U.S. President Donald Trump looks on during an event to announce that the Space Force Command will move from Colorado to Alabama, in the Oval Office at the White House in Washington, D.C., U.S., September 2, 2025. REUTERS/Brian Snyder
President Donald Trump's questionable ouster of a Federal Reserve official over allegations of mortgage fraud was dealt a blow Monday evening when an appeals court declined to allow him to do so.
Lisa Cook was fired by Trump from her position as a Federal Reserve governor based on claims that she claimed two properties as primary residences on loan documents to obtain more favorable terms. The administration cited mortgage fraud claims lodged by Bill Pulte, head of the Federal Housing Finance Agency, as "cause" for dismissal, which is legally required for a president to remove a Fed governor.
Cook has not been charged with a crime, and new documents show that her disclosures may not have constituted fraud.
On Monday evening, a federal appeals court in Washington, D.C. rejected a Justice Department request to pause a judge's order temporarily blocking Trump from firing Cook, Reuters reported. As such, Cook can — for now — remain at the Fed ahead of a key policy meeting on Tuesday and Wednesday.
The latest court blow comes after U.S. District Judge Jia Cobb ruled last week that Trump's mortgage fraud claim likely wasn't sufficient grounds for her removal.
The administration is expected to appeal to the U.S. Supreme Court.