A U.S. appeals court has ruled against former President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, allowing her to remain on the board during the pending legal case. The D.C. Circuit Court upheld a lower court’s decision, stating that Cook’s due process rights were violated as she was not given proper notice or an opportunity to respond to the allegations. 

The Trump administration had accused Cook of mortgage fraud, alleging that she misrepresented property ownership before her 2022 confirmation. However, Cook has denied these allegations, and a federal judge previously ruled that the claims did not meet the legal grounds required for her removal. 

The appeals court’s decision is significant as it underscores the importance of due process and the legal protections afforded to Federal Reserve governors. The case also highlights ongoing tensions between the executive branch and the central bank over monetary policy decisions. 

The Trump administration is expected to appeal the ruling to the Supreme Court. In the meantime, Cook will continue to serve on the Federal Reserve Board, including participating in the upcoming policy meeting where interest rate decisions are expected to be made.