Judicial Showdown: Appeals Court Denies Trump's Bid to Oust Fed Governor Lisa Cook Ahead of Rate Decision

New York, NY – September 16, 2025 – In a significant blow to executive authority, a federal appeals court has ruled against President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook from her position. The decision, handed down just hours before a pivotal Federal Open Market Committee (FOMC) meeting, underscores tensions between the White House and the independent central bank.The case stemmed from Trump's public criticism of Cook, whom he accused of "woke economics" and contributing to inflationary policies during the Biden-Harris era. Appointed in 2022, Cook's term extends until 2036, and the court affirmed that Fed governors can only be removed "for cause," not at presidential whim. "This preserves the Fed's insulation from political interference," the ruling stated, citing precedents from the 1930s.Trump responded furiously on X, calling the judges "deep state puppets" and promising an appeal to the Supreme Court. "We're draining the swamp, but the swamp fights back!" he tweeted. The timing is critical, as the Fed is expected to announce a quarter-point interest rate cut tomorrow amid cooling inflation and robust job growth.Economists are divided: Supporters of Cook praise her focus on labor market disparities, while critics argue her dovish stance has fueled asset bubbles. Wall Street reacted mildly, with futures dipping slightly before recovering. This ruling could set the stage for broader battles over Fed independence, especially as Trump pushes for allies like newly confirmed Governor Stephen Miran to influence monetary policy.As debates rage online under #FedDrama, the decision reinforces the checks and balances in U.S. economic governance, but at the cost of heightened political friction.