Trump urges appeals court to pause ruling blocking Fed's Lisa Cook ouster

Donald Trump has formally asked a federal appeals court in Washington to pause a ruling that blocked his move to fire Federal Reserve Governor Lisa Cook, according to a filing first submitted Thursday.

The White House is pushing for a decision by Monday, one day before the Federal Reserve meets to decide on interest rates, and just days after a district judge blocked Trump’s attempt to remove Cook from her post.

The request, filed by the Justice Department on Trump’s behalf, was sent to a three-judge panel and demands an emergency stay on U.S. District Judge Jia Cobb’s ruling.

Cobb had previously blocked the president from carrying out the firing, saying Trump “likely” lacked proper cause under the Federal Reserve Act and violated Cook’s due process rights when he attempted to oust her through a social media post.

The court’s stay would let the firing take effect before Trump’s full appeal is even heard. The administration’s filing said:

“Even with the Federal Reserve’s unique structure and history, its governors are subject to removal for cause, and the president’s actions to remove Cook based on her misconduct should strengthen, not diminish, the Federal Reserve’s integrity.”

That’s the position Trump is taking to justify the firing, and now he wants the courts to act fast.

Justice Department tells court the clock is ticking

The Fed’s board is scheduled to begin its rate policy meeting Tuesday. As it stands, Lisa can still participate, as long as Cobb’s ruling remains in effect. Trump is asking the appeals court to issue a stay before that meeting starts.

If the court doesn’t rule in time, the White House is prepared to take the case straight to the Supreme Court. Trump’s decision to fire Lisa came after Federal Housing Finance Agency Director Bill Pulte accused her of mortgage fraud in three states.

In 2021, Lisa allegedly listed properties in Michigan and Georgia as her “primary residence” to receive better loan terms. Later, Pulte added another allegation, this time involving a third mortgage in Massachusetts.

Rather than issue a formal termination, Trump made the announcement online, a move Judge Cobb said likely denied Lisa any “meaningful opportunity” to contest the allegations. That’s what triggered the legal pushback.

Cobb ruled that Trump’s method of firing could be unconstitutional, and that the allegations alone didn’t amount to legal “cause” for removal under the Fed’s rules.

If the three-judge appeals panel grants the stay, Trump’s action could go into effect immediately, regardless of whether the broader legal fight is over.

These kinds of emergency stays are only approved if judges believe the appeal has a good shot at success and that Trump would suffer “irreparable harm” without immediate relief. It’s not yet clear how fast the panel will decide.

Lisa hasn’t spoken publicly about this herself, while the Federal Reserve itself has remained neutral, saying it will honor the courts’ final decision.

But Lisa has previously said that Trump’s effort to remove her is part of a “politically motivated pattern”, warning that her ouster could damage public trust in the Fed and create long-term risks for the economy.

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