Trump Appeals Judge’s Order Blocking Fed Governor Lisa Cook’s Removal: Report

President Donald Trump on Wednesday appealed the federal judge’s order, which is blocking him from removing Federal Reserve Governor Lisa Cook while a lawsuit over her dismissal moves forward, according to a report by CNBC.

Trump has accused Cook of mortgage fraud, but his effort to oust her was paused after U.S. District Court Judge Jia Cobb issued a temporary stay. “The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb said. The stay means that she will be able to participate in next week’s closely watched Federal Open Market Committee (FOMC) meeting.

The dispute over Cook’s removal follows Trump’s announcement last month that he was firing her after Federal Housing Finance Agency Director Bill Pulte accused her of misrepresenting loan documents tied to properties she owned. Cook has denied any wrongdoing, and her attorneys argue that Trump lacks the legal grounds to remove her from the central bank board.

Trump has already appointed two of the Fed’s seven governors. Just hours before his appeal on Wednesday, the Senate Banking Committee voted along party lines to advance his latest nominee, Stephen Miran, to fill the seat vacated by Adriana Kugler. If Cook is ultimately removed and another member is nominated, it would leave room for the majority of the Fed’s board to consist of Trump-appointed members. 

Markets are pricing in a near-certain rate cut, with the CME FedWatch Tool showing a 90.1% probability the Fed will lower rates by 25 basis points. Stocks rallied on the expectations, with the S&P 500 climbing to a record 6,555.97 after data showed an unexpected drop in wholesale prices.

The SPDR S&P 500 ETF (SPY) was up 0.32% and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.19% higher. Retail sentiment around SPY on Stocktwits moved higher with ‘bullish’ territory over the past day. 

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