Appeals court rejects Trump request to remove Fed governor Lisa Cook

The decision comes just hours before the central bank’s next meeting begins

- Lydia Wheeler & Nick Timiraos

A federal appeals court on Monday night rejected an emergency Trump administration request to remove Federal Reserve Governor Lisa Cook ahead of the central bank’s next meeting.

A divided three-judge panel in Washington, D.C., left in place a lower court injunction that blocked Cook’s termination while she challenges the legality of Trump’s move.

The administration could seek intervention from the Supreme Court, but it is running out of time before the next Fed meeting, which begins Tuesday.

Trump announced last month that he would remove Cook, citing allegations that she submitted fraudulent information on mortgage applications before she took office.

Federal Housing Finance Agency Director Bill Pulte, a Trump appointee, first publicized the allegations and referred them to the Justice Department, which has since launched a criminal investigation.

Cook hasn't been charged with a crime, and, in court filings, has denied committing mortgage fraud. In her most recent submission, her lawyers say the complete property records “reveal the opposite” of what the administration claims.