DC Circuit Blocks Trump’s Firing of Fed Governor, Notes Likely Due Process Violation

By Jordan Lee

Washington, D.C. – September 16, 2025

A federal appeals court made a key ruling. The U.S. Court of Appeals for the D.C. Circuit blocked President Donald Trump’s bid to fire Federal Reserve Governor Lisa Cook. The decision came on September 15. It was a 2-1 vote. The court said her removal likely broke due process rules. This keeps Cook on the job for now.

Lisa Cook is a key figure at the Fed. She is the first Black woman on the Board of Governors. President Joe Biden appointed her in 2022. She joined in 2023. Cook focuses on economic policy. She has a background in economics. She taught at Michigan State University. Her term ends in 2028.

The trouble started last month. Trump tried to fire her on August 28. He cited mortgage fraud claims. Trump said Cook lied on loan papers. She listed two homes as her main residence. That could lower interest rates. Trump called it “cause” for removal. Federal law lets presidents fire Fed governors only for cause. This means misconduct or failure in duties.

Cook fought back fast. She sued Trump and the Fed. The suit went to U.S. District Court in D.C. Judge Jia Cobb heard it. Cobb ruled on September 9. She blocked the firing. Cobb said Trump likely violated the Federal Reserve Act. The law needs real cause. Not old issues from before her job. Cobb also said it broke due process. Cook got no notice. She had no chance to respond.

The Trump team appealed quick. They wanted emergency help. The Fed had a big meeting on September 16 and 17. It is the Federal Open Market Committee. They set interest rates. Trump wanted Cook out before it started. He said her stay would hurt the Fed’s image. Lawyers argued it would fix integrity.

The D.C. Circuit panel reviewed it. Judges Bradley Garcia and J. Michelle Childs led the majority. Both were Biden picks. They agreed with Cobb. In a concurrence, Garcia wrote, “The government does not dispute that it failed to provide Cook even minimal process.” That means no notice or response time. This violates the Fifth Amendment. It protects due process.

Judge Gregory Katsas dissented. He is a Trump appointee. Katsas said presidents have broad power. He argued “for cause” lets Trump decide. He worried about market confidence. Katsas said the Fed needs capable leaders.

This ruling lets Cook join the meeting. She can vote on rates. Markets watch close. The Fed might cut rates. It fights inflation. Cook’s voice matters. She often pushes for inclusive policy.

Cook denied the claims. Records show she listed her Atlanta condo as a vacation home. No tax breaks were taken wrong. A Michigan assessor found no issues. Her lawyers say it is a pretext. They claim Trump wants control over the Fed. He has criticized it before. Trump calls it too slow on rates.

The Fed’s independence is at stake. It started in 1913. Presidents never fired a governor before. This is historic. Experts say it tests limits. The law shields the Fed from politics. It keeps money policy steady.

Legal fights grow. Trump fired other officials too. Like FTC Chair Lina Khan. And NLRB members. Courts block some. The Supreme Court might step in. It stayed similar blocks before. Trump has hours to appeal. The meeting starts soon.

Cook’s team is glad. Her lawyer, Amanda Comey, said, “This upholds the rule of law.” They plan to fight on. The case could go to full appeals court. Or the high court.

Democrats cheer the win. They say it protects the Fed. Republicans call it overreach. They back Trump’s power.

Markets react calm. Stocks held steady. Bond yields dipped a bit. Investors eye the rate vote.

This case shows big tensions. Executive power vs. agency shields. Due process for officials. The outcome shapes the Fed. And Trump’s term.

Cook keeps working. She attends events. Her role inspires many. As the first Black woman governor. She pushes for fair economics.

The appeals court set no date for full hearing. But pressure builds. With the economy key. This fight matters a lot.

For now, Cook stays. The block holds. Trump must wait. Or appeal higher.