Trump Appeals Court Block on Fed Governor Cook’s Removal as Rate Cut Looms

[Hypedyor]

U.S. President Donald Trump has filed an appeal against a district court injunction that blocked his attempt to remove Federal Reserve Governor Lisa Cook, escalating a legal battle just days before a crucial Fed rate decision.

 

Trump moved to oust Cook on Aug. 25, citing alleged misrepresentations in mortgage documents that he labeled “deceitful and potentially criminal.” Cook challenged the dismissal, arguing the president exceeded his authority and violated her due process rights. The Department of Justice has backed Trump, claiming the president has broad discretion to remove officials “for cause.”

 

New evidence, however, appears to support Cook’s case. A 2021 loan summary reportedly shows her Atlanta property was correctly classified as a vacation home, contradicting claims of misrepresentation. This could weaken the administration’s argument as the court battle continues.

 

The appeal coincides with growing anticipation of a Federal Reserve rate cut, expected Wednesday. Markets price in a near-certain 25 basis point reduction, the first since December 2024. Meanwhile, speculation is rising around potential successors to Fed Chair Jerome Powell, with BlackRock’s Rick Rieder seen as a leading contender.