The U.S. Court of Appeals for the District of Columbia Circuit issued an important decision this week in favor of Lisa Cook, the embattled member of the Federal Reserve's Board of Governors whom President Donald Trump is currently seeking to fire. The ruling lets Cook remain in her job for now while also practically guaranteeing that the U.S. Supreme Court will soon take up the case.
By a 2–1 vote on Monday, the D.C. Circuit blocked Trump's purported firing of Cook from going into effect while her lawsuit plays out. Why? Because, the D.C. Circuit said, Cook "is likely to succeed" in showing "that she did not receive sufficient process prior to her removal in violation of the Due Process Clause of the Fifth Amendment."
According to the Federal Reserve Act, the president may remove a member of the Federal Reserve's Board of Governors "for cause." In this case, Trump alleges that "there is sufficient cause to remove" Cook from her position as a Fed governor because there is "sufficient reason to believe [Cook] may have made false statements on one or more mortgage agreements." At this point, however, Trump's allegations against Cook are just that, allegations. No formal charges have been filed against Cook, and she has not been convicted of any wrongdoing.
