A panel of federal judges blocked President Donald Trump from removing Lisa Cook from the Federal Reserve’s board, hours before she and other top Fed officials are set to begin a meeting about whether to lower interest rates.<\/p>\n\n\n\n
Two of three judges on the appeals court panel said the Trump administration had \u201cnot satisfied the stringent requirements for a stay pending appeal.\u201d<\/p>\n\n\n\n
A federal judge in Washington blocked Cook\u2019s removal on Sept. 9, but the administration quickly appealed the ruling and asked the court to rule before the Fed\u2019s next meeting on interest rates. That meeting begins Tuesday and concludes Wednesday.<\/p>\n\n\n\n
Trump is likely to appeal Monday’s ruling to the Supreme Court.<\/p>\n\n\n\n
Trump moved to fire Cook in late August, citing allegations of mortgage fraud brought by one of his political appointees, Federal Housing Finance Agency Director Bill Pulte. Cook has not been charged with any crime and has denied the allegations.<\/p>\n\n\n\n
\u201cGovernor Cook did not ever commit mortgage fraud,\u201d Cook\u2019s lawyers wrote in a recent legal filing. NBC News has also reviewed documentation about the property in question, which shows that she designated the second property as a \u201cvacation home\u201d or \u201c2nd home\u201d and not as a primary residence, as Pulte has alleged.<\/p>\n\n\n\n
In their ruling, the appeals court judges said Cook \u201cmay not be removed prior to being provided \u2018some kind\u2019 of meaningful notice and opportunity to respond.\u201d<\/p>\n\n\n\n
The judges added that \u201cCook\u2019s role at the Federal Reserve differs in relevant ways\u201d from the roles of officials at other agencies.<\/p>\n\n\n\n
The Supreme Court recently sought to distinguish the Fed from other attempts by Trump to fire top officials at federal agencies. The high court noted that the Fed is a \u201cuniquely structured, quasi-private entity\u201d that has its own distinct historical tradition.<\/p>\n\n\n\n
Under the Federal Reserve Act, the only reason Federal Reserve governors can be removed from their positions is \u201cfor cause,\u201d or some type of wrongdoing.<\/p>\n\n\n\n
The White House has repeatedly maintained that Trump “lawfully removed Lisa Cook for cause.”<\/p>\n\n\n\n
The allegations of mortgage fraud from the administration closely resemble similar allegations made against top Democrats.<\/p>\n\n\n\n
Trump is the first president in history to try to fire a top Fed official. Cook’s lawyers have said that if he succeeds, it could lead to instability at the world’s most influential central bank.<\/p>\n\n\n\n
\u201cAn independent central bank … acts predictably and transparently, which stabilizes markets and the wider economy,” her lawyers wrote in an Aug. 28 court filing. “In the few days following President Trump\u2019s unprecedented action, media, economists, and academics from across the political spectrum have sounded the alarm that his actions threaten the historic independence of the Federal Reserve.”<\/p>\n\n\n\n
Many economists have raised concerns that firing Cook could lead to widespread financial instability.<\/p>\n\n\n\n
\u201cIf the president were successful” in removing Cook, “the outcome would be momentous,\u201d JPMorgan\u2019s chief U.S. economist wrote shortly after Trump said he was firing her.<\/p>\n\n\n\n