A U.S. appeals court on Monday rejected former President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook from office.
According to Reuters, the ruling by the U.S. Court of Appeals for the District of Columbia Circuit leaves Trump’s team with only a few hours to approach the U.S. Supreme Court if it wants to stop Cook from joining the Fed’s policy meeting scheduled for Tuesday and Wednesday.
At the meeting, the central bank is expected to lower interest rates to support the slowing job market. The D.C. Circuit also turned down the Justice Department’s request to pause a lower court ruling that temporarily stopped Trump from dismissing Cook, who was appointed by former Democratic President Joe Biden.
U.S. District Judge Jia Cobb had ruled on September 9 that Trump’s claims that Cook committed mortgage fraud before taking office, which Cook denies, likely were not sufficient grounds for removal under the law that created the Fed.
The decision was 2-1, with Circuit Judges Bradley Garcia and J. Michelle Childs in the majority, both of whom were appointed by President Joe Biden.
Circuit Judge Gregory Katsas, a Trump appointee, dissented. In an opinion joined by Childs, Garcia wrote that Cook is likely to prevail on her claim that she has been denied due process in violation of the U.S. Constitution’s Fifth Amendment.
“Before this court, the government does not dispute that it provided Cook no meaningful notice or opportunity to respond to the allegations against her,” the judge wrote.
The Fed, which had no comment on the ruling, has not made any legal arguments in the case. It has asked the courts for a swift resolution of the matter, and has said it will abide by any court ruling.
