The Trump administration said on Wednesday that it would appeal a court ruling that allowed Lisa Cook, a governor at the Federal Reserve, to continue serving on the board of governors while she contests the legality of President Trump’s attempt to fire her.
In a two-page notice, the government said it would challenge the matter at the U.S. Court of Appeals for the District of Columbia, escalating its legal battle less than one week before the Fed is set to vote on interest rates.
Mr. Trump fired Ms. Cook in late August, claiming he had “cause” to order her dismissal under the Fed’s founding statute. He cited allegations that Ms. Cook falsified records to obtain favorable mortgage terms.
Ms. Cook, who has not been charged with or convicted of a crime, quickly sued the president over her ouster, which her lawyers described as part of a pattern of political interference meant to influence the Fed’s approach on borrowing costs. Mr. Trump has made no secret of his desire to see interest rates lower — and of his hopes of securing a majority at the central bank that shares his views.
Late Tuesday, a federal court sided with Ms. Cook, issuing a preliminary injunction that blocked Mr. Trump from dismissing her while the court prepares to hear both sides’ arguments.
Judge Jia M. Cobb of the U.S. District Court for the District of Columbia said that Mr. Trump’s justifications for Ms. Cook’s removal did not meet the threshold set under law, because the action in question took place before the Senate confirmed her as governor. Moreover, the judge said that cause must also stem from behavior while carrying out duties related to the job.
The appeal only adds to the cloud of uncertainty at the Fed, which has faced withering attacks from Mr. Trump in recent months, troubling economists who fear that the central bank and its political independence are at stake.
As the case proceeds, the president has also sought to secure a final confirmation vote for one of his top aides to fill a separate vacancy on the board. Mr. Trump has tapped Stephen Miran, the chairman of the Council of Economic Advisers, to take the seat vacated after the sudden departure of Adriana Kugler — a move that has alarmed Democrats given Mr. Miran’s close political ties to the White House.
Ms. Cook’s lawyers did not immediately respond to a request for comment.
Tony Romm is a reporter covering economic policy and the Trump administration for The Times, based in Washington.
Colby Smith covers the Federal Reserve and the U.S. economy for The Times.
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