Ahead of the Federal Reserve’s key vote on interest rates this week, the Justice Department has made a fresh attempt to stay a lower court's injunction blocking President Donald Trump’s firing of Fed Governor Lisa Cook.
Firing Not Subject To ‘Judicial Second-Guessing’
On Sunday, the DOJ filed documents with the U.S. Court of Appeals for the District of Columbia, arguing that the removal “for cause” standard gives the President broad discretion.
Under its argument titled, “The President's ‘Cause’ Determination Is Not Subject to Judicial Second-Guessing,” the DOJ says that when a statute gives the power of removal “for cause,” without any specification, the removal decision then becomes entirely “a matter of discretion and not reviewable” by the judiciary.
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The filing pushed back against the lower court's ruling that “for cause” must only be tied to post-confirmation misconduct, saying that this interpretation “finds no support in text or precedent.”
The DOJ also argued against the “due-process” claim made by Cook’s attorneys, calling it “meritless.” They say “public office is not private property,” while adding that Cook, as a principal officer of the United States, is not entitled to civil-service-style protections and “has provided no basis to believe that a hearing would have made a difference.”
This comes in response to filings made by Cook’s attorneys on Saturday, urging the judges to reject the administration’s request for a stay of the lower court’s injunction order.
Trump Seeks Cook’s Ouster Before Key Vote
DOJ attorneys are urging the appeals court to issue a ruling by Monday afternoon, ahead of Tuesday's Federal Open Market Committee meeting, where Cook is scheduled to participate in deliberations on a potential interest rate cut.
Trump has been increasingly vocal in his demands for a rate cut in recent months, aimed at reducing the interest rate burden on the federal debt, while also helping to spur economic growth.
Economists such as Craig Shapiro of the Bear Traps Report have since warned that Cook’s ouster could hand Trump a rare majority in the FOMC, allowing the administration to appoint two more governors, leading to a 4-3 majority on the board. After Fed Chair Jerome Powell steps down in May 2026, this could turn into a 5-2 majority, he says.
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