The federal appeals court on Monday rejected President Trump’s move to remove Fed Commission member Lisa Cook.
In a 2-1 decision, the panel refused to stop the lower court’s ruling of Ms. Cook, who said the court was fired without giving her proper notice.
The DC Circuit Court of Appeals agreed, saying Ms. Cook should have proper notice and due process when termination because she could only delete her “for reasons” under the Federal Reserve Act.
“The Supreme Court and the court repeatedly ruled that a public official with “causal protection” has a constitutionally protected property interest in his post,” wrote Justice Bradley Garcia appointed by Biden.
“Given that Cook has a property interest in her position, she has the right to do “some kind of process” before deletion.”
Obama-appointed J. Michelle Childs joined Judge Garcia.
Meanwhile, Judge Gregory G. Katsas, a Trump-appointed person, disagreed. He noted that Mr. Trump fired Ms. Cook after allegations of her committing mortgage fraud.
He wrote: “The President explicitly invoked reasons related to Cook’s behavior, ability, fitness or ability. The charge against Cook, if she intends to act, could constitute mortgage fraud, which is a felony crime.”
Ms. Cook was appointed governor of the Federal Reserve by then-President Biden in 2023.
Mr. Trump tried to fire her last month on charges of her committing mortgage fraud in 2021.
She allegedly received a $203,000 mortgage on a Michigan property that she said was her “primary residence”, but just a few weeks later, a Georgia property also received another mortgage, which she also promised to use as her primary residence.
Mr. Trump terminated her, suggesting that the allegations made her question of trustworthiness.
The appeal panel’s ruling is expected to be appealed to the Supreme Court by the Trump administration.
The Fed is expected to meet this week and discuss lowering interest rates the day before.
