Key Facts
• On September 15, a U.S. federal appeals court upheld a lower court’s ruling to temporarily block the dismissal of Federal Reserve Board (FRB) Governor Cook.
• Cook faced dismissal by the Trump administration over alleged mortgage fraud.
• The court ruled Cook must be given an opportunity to respond before dismissal.
• The Trump administration plans to appeal the decision to the Supreme Court, claiming the dismissal was lawful.
• On September 16, the FRB announced the appointment of Steven Millan, a key Trump economic advisor, as a new board member.
• The Democratic Party criticized Millan’s appointment, citing concerns over the independence of FRB’s monetary policy.
• The FRB is expected to decide on an interest rate cut during its ongoing policy meeting, with attention on Cook and Millan’s positions.
Summary
A U.S. federal appeals court has upheld a lower court’s decision to temporarily block the dismissal of Federal Reserve Board Governor Cook, who faced allegations of mortgage fraud. The Trump administration, which sought Cook’s removal, plans to appeal to the Supreme Court, asserting the dismissal was lawful. Meanwhile, the Federal Reserve announced the appointment of Steven Millan, a close Trump advisor, as a new board member, sparking concerns from Democrats about the independence of monetary policy. The ongoing Federal Reserve meeting, where an interest rate cut is anticipated, has drawn attention to the roles of Cook and Millan in shaping policy decisions.
