The U.S. Court of Appeals for the District of Columbia Circuit rejected the Justice Department’s request to uphold a previous ruling preventing Trump from firing Cook, with a 2-1 vote.
This ruling comes just one week after a district judge also ruled against Trump’s attempt to dismiss Cook. U.S. District Judge Jia Cobb ruled last week that Trump’s allegations of mortgage fraud against Cook, which she has denied, were insufficient grounds for her removal.
Trump is now expected to appeal the case to the Supreme Court.
The effort to remove Cook has raised concerns about the independence of the Federal Reserve, as this is the first time a president has pursued such action since the Fed’s establishment in 1913.
Trump has repeatedly pressured the Fed to cut interest rates and even threatened to fire Chairman Jerome Powell over the issue. The ruling comes just ahead of this week’s Fed meeting, where the central bank is widely expected to cut rates by at least 25 basis points.
However, the Fed’s interest rate outlook remains uncertain, particularly given the persistent inflation in the U.S.
In another development, Trump’s nominee to the Fed Board, White House adviser Stephen Miran, was narrowly confirmed by the Senate. Miran will replace former Governor Adriana Kugler, serving until the seat’s term ends in January 2026.
Miran’s confirmation will also allow him to attend the policy meeting this week, ensuring that Trump has at least three members of the seven-member Fed board influencing interest rate decisions.