The Trump administration on Thursday urged the D.C. Federal Appeals Court to allow the firing of Federal Reserve Governor Lisa Cook to take effect before the central bank’s interest rate-setting meeting next week.
DOJ Wants Ruling By Monday
Lawyers from President Donald Trump’s Department of Justice have requested the Appeals Court to issue a verdict on the matter by Monday afternoon, ahead of the Federal Open Market Committee meeting on Tuesday, which includes Cook, and is set to decide on whether to cut benchmark interest rates, according to a report by CNBC.
According to filings made by the Department of Justice, the FOMC “is scheduled to meet and may direct open market activities for Federal Reserve Banks,” underscoring the urgency of the matter.
This comes after a district court judge, Jia Cobb, blocked Cook’s ouster, saying that the move violated constitutional protections and raised questions regarding the Central Bank’s independence.
Trump Seeks Rare FOMC Majority
Trump has been vocal in his demands for a rate cut in recent months, to help reduce the interest burdens of the Federal Government, while spurring economic growth.
The firing of Cook could hand him a rare majority in the FOMC, allowing him to appoint two more governors, resulting in a 4-3 majority on the board. After Fed Chair Jerome Powell’s term ends in May 2026, this majority can expand to 5-2, according to macro strategist Craig Shapiro.
Shapiro warns that this “majority could stop regional Fed presidents from being reappointed,” or “open up the process for the next Fed chair to replace existing Fed Regional presidents in the second half of 2026.”
Early this week, hedge fund manager and Trump ally, Ken Griffin, similarly warned against interference in the Federal Reserve, saying, “The U.S. built its economic credibility slowly over a long time. Once lost, it won’t be easy to regain.”
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