On Sunday, the Trump administration renewed its request to a federal appeals court to block a lower court order prohibiting the removal of Federal Reserve Governor Lisa Cook.
In its new filing, the Trump Justice Department once again asked the D.C. Court of Appeals to stay a preliminary injunction issued last week by D.C. District Judge Jia Cobb, a Biden appointee. That order barred President Trump from removing the Biden-appointed Cook and “ruled that Cook would likely succeed in an August lawsuit she filed against Trump over his effort to oust her from the Federal Reserve,” (Storage Courtlistener) according to a local Fox affiliate.
Trump announced he was firing Cook on August 25 over allegations broached by one of his appointees that she committed mortgage fraud related to two properties she purchased in Ann Arbor, Michigan, and Atlanta in 2021, before she joined the Federal Reserve, the outlet reported.
Sunday’s filing echoed arguments the administration made in its original appeal filed with the D.C. Circuit last Thursday. In that motion, the DOJ characterized Cobb’s preliminary injunction as an “extraordinary order countermanding the President’s exercise of his Article II authority,” (Storage Courtlistener) and contended that the order “rests on a series of legal errors.”
Citing Supreme Court precedent, the administration argued that “when a statute gives a power of removal ‘for cause,’ without any specification of the causes, the removal decision ‘is a matter of discretion and not reviewable.’” (Storage Courtlistener)
It further claimed that Trump “had clear cause to remove Cook from office” (Storage Courtlistener); that “there is no basis under the Due Process Clause for enjoining the President’s removal of a principal officer”; and that “the Supreme Court has established that the balance of equities favors the government when a district court reinstates a removed principal officer.”
“The Court should grant an immediate administrative stay and issue a stay pending appeal,” (Storage Courtlistener) the Thursday filing reads.
In their opposition to the DOJ’s motion for appeal filed Saturday, Cook’s lawyers argued that their client’s removal from the Federal Reserve would “mark an immediate end” (Storage Courtlistener) to what they described as “the independence of the Federal Reserve.” They further argued that Cook’s removal “would send a destabilizing signal to the financial markets that could not be easily undone.”
The Trump administration has asked the D.C. Circuit to render a verdict on its appeal by Monday.
Why it matters
- Legal or policy outcomes depend on hearings, rulemaking, and potential court challenges.
- The Trump administration seeks to overturn a court order protecting Federal Reserve Governor Lisa Cook from removal, highlighting tensions over executive power.
- Cook's removal could undermine the independence of the Federal Reserve, raising concerns about market stability and governance.
- The case underscores the ongoing legal battles surrounding appointments made by previous administrations and their implications for federal authority.
What’s next
- The D.C. Circuit is expected to rule on the Trump administration's appeal by Monday.
- Cook's legal team continues to oppose the removal, emphasizing the potential impact on financial markets.
- The case may set a precedent for future executive actions regarding federal appointments.