In a major setback for President Donald Trump, a U.S. Appeals Court for the District of Columbia denied an emergency motion to remove Federal Reserve Governor Lisa Cook, allowing her to participate in this week’s Federal Open Market Committee meeting.
Lack of Due Process
On Monday, the court decided to leave the lower court’s preliminary injunction against Cook’s ouster intact, saying that “appellants have not satisfied the stringent requirements for a stay pending appeal.”
In a 2-1 decision, Judges Brad Garcia and Michelle Childs issued a concurring opinion saying that Cook was likely denied her constitutional rights when removed without any opportunity to respond to the allegations against her.
“The government does not dispute that it failed to provide Cook even minimal process, that is, notice of the allegation against her and a meaningful opportunity to respond,” Garcia and Child say in a joint statement. They conclude that the removal “likely violated the Fifth Amendment's Due Process Clause.”
Judge Gregory Katsas, who was appointed by Trump, dissented, saying that Cook's removal was based on “apparent misrepresentations Cook had made in applying for home mortgages.” According to Katsas, public office is not a property right and that Cook's position did not merit constitutional protection from removal.
Trump Sought Cook’s Ouster Before Key FOMC Meeting
DOJ attorneys had urged the appeals court to issue a ruling on the matter by Monday afternoon, ahead of the FOMC meeting on Tuesday and Wednesday, in which Cook is set to participate, and deliberate on potential interest rate decisions of the Federal Reserve.
Trump has been increasingly vocal in his demands for a rate cut in recent months, escalating his attacks on the Federal Reserve’s independence and going after its officials.
On Monday, in a post on X, Sen. Elizabeth Warren (D-Mass.) framed Trump’s firing of Cook, and his “illegal attempt to take over the Fed” as a way of finding a scapegoat for his own failures.
“If the courts – including the Supreme Court – continue to uphold the law, Lisa Cook will keep her seat as a Fed Governor,” Warren said.
Economist Mohamed El-Erian notes that both Cook and Trump’s new pick for Federal Reserve Governor, Stephen Miran, who was confirmed by the Senate just hours before, are set to participate in the Federal Reserve’s policy meeting on Tuesday and Wednesday.
Photo: IAB Studio from Shutterstock
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