The Trump administration appeals! Trying to overturn the federal judge's ruling temporarily blocking its dismissal of Federal Reserve Board member Cook.

The Trump administration quickly took action on Wednesday, appealing to a higher court in an attempt to overturn a federal judge's temporary halt on the dismissal of Federal Reserve Governor Lisa Cook. This move aims to complete the removal of Cook before the Fed's interest rate decision meeting on September 16th and 17th, paving the way for Trump's intervention in monetary policy. The Department of Justice (DOJ) submitted a brief on Wednesday stating that it will appeal Federal District Judge Jia Cobb's ruling from Tuesday night, and the case will be transferred to the District of Columbia Circuit Court of Appeals. The brief did not include any legal arguments, only stating that they disagree with the original decision. Prior to this, the DOJ had asked Judge Cobb to make a ruling quickly in order to provide the Trump administration with an opportunity to appeal in time for the Fed rate meeting. Judge Cobb ruled on Tuesday that Trump's allegations against Cook for mortgage fraud before taking office were not sufficient legal grounds to dismiss her, and she issued an injunction to prevent the Fed from carrying out the removal order until there is further progress in Cook's lawsuit. White House spokesperson Kush Desai stated before the appeal that Trump "lawfully dismissed Cook from her position" and emphasized that "this ruling will not be the final result." Cook filed a lawsuit at the end of August, vehemently denying any wrongdoing. She pointed out that Trump's allegations of mortgage fraud were related to her behavior before her confirmation appointment to the Senate in 2022, and do not constitute a legal reason for the President to dismiss a Federal Reserve Governor. Cook stated that Trump's actions were an excuse to eliminate voices that were not in line with his monetary policy stance. According to court documents, Trump and his appointed director of the Federal Housing Finance Agency (FHFA), William Pulte, alleged that Cook provided inaccurate information in loan applications for three properties, potentially obtaining lower loan rates and tax benefits. Sources and documents indicate that the DOJ has initiated a criminal investigation into this case, issuing grand jury subpoenas in Georgia and Michigan to officially launch an investigation into mortgage fraud. Trump suddenly announced Cook's dismissal at the end of August, becoming the first president in US history to attempt to remove a Federal Reserve Governor. According to the Federal Reserve Act, a Fed Governor can only be removed "for cause," but the law does not clearly define the term or establish relevant procedures. This provision has never been substantially tested in court. Judge Cobb emphasized in her ruling the significant public interest in maintaining the independence of the Federal Reserve to prevent political interference. She stated that the most reasonable legal interpretation is that the President can only dismiss a Governor for misconduct during their term. The alleged mortgage fraud by Cook occurred before she took office, therefore not constituting a legal reason. Analysts believe that this case is likely to be ultimately brought to the US Supreme Court and will be a landmark case defining the independence of the Federal Reserve. If Trump wins, the power of direct presidential intervention in monetary policy will significantly expand, potentially damaging market trust in the Fed as an independent central bank. Trump has long criticized Fed Chair Powell's policy stance and has repeatedly publicly demanded the Fed to "immediately and significantly cut interest rates." The Fed is expected to announce a rate cut at next week's FOMC meeting, and Cook has consistently voted with the majority of members on all rate decisions since her appointment in 2022, including votes on raising and lowering rates. The market is concerned that Trump's actions are aimed at removing potential opposition before a crucial meeting in order to push for more aggressive monetary policies. Analysts point out that this move has escalated concerns about the Fed's independence and policy outlook in the financial markets.