A panel of federal judges blocked President Donald Trump from removing Lisa Cook from the Federal Reserve’s board, hours before she and other top Fed officials are set to begin a meeting on whether to lower interest rates.
Two of three judges on the appeals court panel said that the Trump administration had “not satisfied the stringent requirements for a stay pending appeal.”
Cook’s removal was previously blocked by a federal judge in Washington on Sept. 9, but the administration quickly appealed it and asked that the court to rule before the Fed’s next meeting on interest rates. That meeting begins on Tuesday and concludes Wednesday.
Trump moved to fire Cook in late August, citing allegations of mortgage fraud brought by one of his political appointees, Federal Housing Finance Agency Director Bill Pulte. Cook has not been charged with any crime and has denied the allegations.
“Governor Cook did not ever commit mortgage fraud,” Cook’s lawyers wrote in a recent legal filing. NBC News has also reviewed documentation regarding the property in question, which shows that she designated the second property as a “vacation home” or “2nd home” and not as a primary residence, as Pulte has alleged.
In their ruling, the appeals court judges said that Cook “may not be removed prior to being provided ‘some kind’ of meaningful notice and opportunity to respond.”
The judges added that “Cook’s role at the Federal Reserve differs in relevant ways” from officials at other agencies.
The Supreme Court recently sought to distinguish the Fed from other attempts by Trump to fire top officials at federal agencies. The high court noted that the Fed is a “uniquely structured, quasi-private entity” that has its own distinct historical tradition.
Under the Federal Reserve Act, the only reason Federal Reserve governors can be removed from their positions is “for cause,” or some type of wrongdoing.
This is a developing story. Please check back for updates.
