Trump Asks Appeals Court to Let Him Oust Fed’s Lisa Cook (1)

The US Justice Department appealed a judge’s decision that temporarily blocks President Donald Trump from ousting Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, keeping the case on track to end up at the Supreme Court.

The government on Wednesday filed a notice that it’s asking the federal appeals court in Washington to overturn the ruling. The Sept. 9 decision by US District Judge Jia Cobb held that Trump likely did not have “cause” under the Federal Reserve Act to fire Cook. It’s unclear how quickly the appeals court panel will be able to rule.

At stake is the makeup of the Fed board during a highly anticipated Sept. 16-17 meeting to vote on whether to lower interest rates. Cook can attend the meeting as long as Cobb’s ruling remains in place.

Any ruling against Trump by the appeals court would likely be challenged quickly at the Supreme Court. Trump could also seek to take the case straight to the justices if the government determines the appeals court is moving too slowly.

WATCH: The DOJ asked a federal appeals court to overturn a judge’s decision that temporarily blocks President Donald Trump from ousting Federal Reserve Governor Lisa Cook. Tyler Kendall reports.

Source: Bloomberg

In her ruling, Cobb said Trump likely violated the Federal Reserve Act by seeking to oust Cook without sufficient “cause” to do so. Cobb also held that Trump likely violated Cook’s constitutional right to due process by attempting to fire her via a social media post that did not give her a meaningful opportunity to challenge the allegations.

The White House blasted the judge’s conclusions hours after they were handed down, with spokesman Kush Desai saying in a statement that Trump “lawfully removed Lisa Cook for cause due to credible allegations of mortgage fraud from her highly sensitive position overseeing financial institutions on the Federal Reserve Board of Governors.”

“This ruling will not be the last say on the matter,” Desai said.

Trump said last month he was firing Cook after Federal Housing Finance Agency Director Bill Pulte accused her of fraudulently listing homes in Michigan and Georgia as a “primary residence” when she obtained mortgages in 2021 to secure more favorable terms on loans. Pulte later added a claim involving a third mortgage in Massachusetts.

The fight over whether Cook can keep her job has quickly emerged as the main flash point in Trump’s bid to assert more control over the Fed, which he has repeatedly called on to lower interest rates. In her lawsuit filed last month, Cook’s lawyer cast Trump’s attempt to fire her as a power grab that could undermine faith in the Fed, causing “irreparable harm” to the US economy. Her lawyer has also said she never committed mortgage fraud.

Cook has alleged that Trump’s move to oust her is part of a politically motivated pattern. The president had previously considered an attempt to force out Fed Chair Jerome Powell after attacking him for not moving quickly enough to reduce interest rates.

(Updates with more context from ruling in paragraph 5.)

To contact the reporters on this story:
Erik Larson in New York at elarson4@bloomberg.net;
Zoe Tillman in Washington at ztillman2@bloomberg.net

To contact the editors responsible for this story:
Misyrlena Egkolfopoulou at megkolfopoul@bloomberg.net

Elizabeth Wasserman

© 2025 Bloomberg L.P. All rights reserved. Used with permission.