A US appeals court on Tuesday stopped President Donald Trump from removing Federal Reserve Governor Lisa Cook, allowing her to continue her role ahead of the Fed’s critical policy meeting.

Trump fired Cook last month, marking the first attempt by a president to remove a Federal Reserve official since 1913. Cook is an appointee of Democratic former President Joe Biden.

Court Denies Temporary Pause

The DC Circuit Court rejected the Justice Department’s request to temporarily suspend a judge’s order that blocked Trump from firing Cook. The administration plans to appeal the decision to the Supreme Court.

Last week, District Judge Jia Cobb ruled that Trump’s allegations of mortgage fraud were insufficient grounds to remove Cook under the Fed’s rules.

Cook Challenges Trump’s Action

In August, Cook filed a lawsuit against Trump. Court documents stated, “This case challenges President Trump’s unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would (be) the first of its kind in the Board’s history.”

The Trump administration had asked the court to act quickly, hoping to remove Cook before the Fed’s policy meeting. Lawyers argued that firing her would “strengthen, not diminish, the Federal Reserve’s integrity.”

Background of the Dispute

The clash started after Bill Pulte, director of the Federal Housing Finance Agency, claimed that Cook had allegedly falsified bank documents to get favorable mortgage terms.

Cook previously disclosed owning homes in Georgia, Massachusetts, and Michigan. Federal prosecutors have started issuing subpoenas to people connected to the case, The New York Times reported.

Investigation Developments

The investigation follows the lead of Martin, head of the Justice Department’s weaponization task force. Martin had signaled his intent to probe the matter as the White House intensified attacks on Cook. Senate Republicans had blocked his nomination for permanent US attorney in Washington, D.C.

What Happens Next

The ruling allows Cook to resume her duties at the Federal Reserve, protecting her role during a key policy period. The legal battle between her and the Trump administration is ongoing and could eventually reach the Supreme Court.