Fed Governor Dodges Trump's Axe! Court Delivers Stunning Rebuke Just Hours Before Critical Interest Rate Decision

WASHINGTON – In a dramatic eleventh-hour ruling, a federal appeals court has slammed the brakes on President Donald Trump's attempt to oust Federal Reserve Governor Lisa Cook, delivering a significant blow to the White House just as the central bank prepared for a crucial two-day policy meeting on interest rates.

The emergency decision, handed down Monday by the U.S. Court of Appeals for the D.C. Circuit, ensures Cook will keep her seat on the influential Board of Governors, for now. The ruling represents a major legal defeat for a president who has repeatedly sought to exert unprecedented control over the nation's independent central bank and its economic policies.

High-Stakes Showdown

At the heart of the explosive dispute are allegations of mortgage fraud that the Trump administration has attempted to leverage as grounds for Cook's dismissal. The White House has argued that these allegations constitute the "cause" required by the Federal Reserve Act to remove a governor. However, it's a critical point that Governor Cook has not been charged with any crime or wrongdoing in relation to these claims.

Critics have viewed the move as a politically motivated effort to remove a key official and install a more compliant figure at the Fed, an institution Trump has frequently criticized over its monetary policy. This latest legal skirmish is seen as a pivotal test of the Fed's long-standing independence from political interference.

Court Blasts Lack of Due Process

The court's sharply divided 2-1 decision rebuked the administration's methods, with the majority opinion pointing out that the White House had failed to provide Governor Cook with even the most basic elements of due process.

"In this court, the government does not dispute that it failed to provide Cook even minimal process," the ruling stated, highlighting the lack of formal notice about the specific allegations against her or a "meaningful opportunity" to respond. This failure to follow fundamental legal procedure appeared to be the decisive factor for the two judges in the majority, who effectively froze the termination proceedings.

The ruling underscores the high legal bar for firing a Fed governor, a protection designed specifically to insulate the country's monetary policy from the day-to-day whims of politics. With this court order in place, Governor Cook will participate in this week's highly anticipated meeting, where officials will deliberate on the future path of interest rates. The White House has not yet commented on its next move in this high-stakes battle.