In a closely watched case with major implications for the independence of the Federal Reserve, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled 2-1 on Monday to block President Donald Trump's attempt to remove Federal Reserve Board member Lisa Cook from her position.
The decision, which comes just months after Trump launched a legal and political campaign to reshape the Fed, keeps Cook in her seat — for now.
The majority opinion was authored by Judge Michelle Childs and joined by Judge Bradley Garcia, both of whom are appointees of former President Joe Biden.
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The two concluded that the president lacked the authority to remove a sitting Fed governor without cause, citing statutory protections and the Fed’s critical role as an independent economic institution.
In a fiery dissent, Judge Gregory Katsas, a Trump appointee, argued that the president retains broad constitutional powers to remove executive officials and accused the majority of “shielding unelected bureaucrats from political accountability.”
The ruling is expected to be appealed to the U.S. Supreme Court, setting up what could be a landmark showdown over the limits of presidential power and the independence of central banking in the U.S. Cook — the first Black woman to serve on the Federal Reserve Board of Governors — was confirmed in 2022 and has been a key voice on monetary policy, financial inclusion and economic stability.
Her continued presence on the Board has drawn criticism from Trump-aligned officials, who claim she is too politically aligned with Democratic priorities.
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Sen. Elizabeth Warren (D-Mass.) wrote on the social platform X: "The courts keep rejecting Donald Trump’s illegal attempt to take over the Fed so he can scapegoat away his failure to lower costs for American families. If the courts – including the Supreme Court – continue to uphold the law, Lisa Cook will keep her seat as a Fed Governor."
MSNBC contributor and former U.S. Attorney Joyce Vance wondered about a sudden intervention from the Supreme Court, writing: "This may be too quick even for the shadow docket. We shall see."
Politico columnist Victoria Guida noted:"President Donald Trump loses his appeal on firing Lisa Cook from the Fed just as one of his top advisers is on the brink of being confirmed to the central bank."
Financial analyst Logan Mohtashami commented that Cook "would advocate for a rate cut."
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Washington Post journalist Andrew Ackerman wrote: "A divided DC appeals court said late Monday that Lisa Cook could remain in her Fed job while she fights Trump's attempt to fire her. The administration will almost certainly appeal to the Supreme Court..."
Former Treasury Department official Ashley Schapitl wrote: "Months ago I would have thought the chance SCOTUS ends Federal Reserve independence on the shadow docket was zero, but now? 50/50?"