A U.S. federal appeals court has temporarily preserved Federal Reserve Governor Lisa Cook's role, rejecting an attempt by former President Donald Trump to expedite her removal. The 2-1 ruling on Monday deferred judgment on whether allegations against Cook meet the legal threshold for dismissal, allowing her to participate in this week's critical Federal Open Market Committee meeting.
The decision leaves the Trump administration with limited time to appeal to the Supreme Court before the Fed's two-day policy meeting begins Tuesday. Cook's presence ensures she can vote on interest rate decisions affecting global markets, a development closely watched by investors and economists.
This follows a September 9 federal court order reinstating Cook after her initial removal. Legal experts suggest the case could test the boundaries of presidential authority over central bank governance.
In related developments, the Senate confirmed Stephen Miran, a Trump-era economic adviser, to the Fed board in a narrow 48-47 vote. Miran will temporarily replace Adriana Kugler while maintaining his White House advisory role through January 2024. The appointment adds new dynamics to monetary policy discussions as markets await signals about future rate adjustments.
