Trump demands the court to continue advancing the impeachment of Cook ahead of next week's Federal Reserve policy meeting
The Trump administration has requested the federal appeals court to suspend the lower court's ruling that prevents the dismissal of Federal Reserve Governor Lisa Cook, asking for a decision before September 15. The urgency of this request stems from the Federal Reserve's monetary policy meeting next week, in which Cook, as a member of the FOMC, will participate. The market widely expects this meeting to lower the benchmark interest rate. Cook's legal team strongly opposes this, arguing that an administrative stay could lead to increased market uncertainty
According to the Zhitong Finance APP, on the eve of the Federal Reserve's monetary policy meeting next week, the Trump administration has requested the federal appeals court to suspend the lower court's ruling that prevents the dismissal of Federal Reserve Governor Lisa Cook.
Lawyers from the U.S. Department of Justice have clearly stated that a decision must be made by the end of the workday on September 15—either to immediately issue an "administrative stay" to suspend the enforcement of the original ruling or to maintain the original ruling's frozen status during the formal appeal process.
The urgency of this request stems from the Federal Open Market Committee (FOMC) meeting scheduled for September 16, which may indicate that the Federal Reserve banks will conduct open market operations, with Cook participating in this two-day meeting as an FOMC member.
The market generally expects that policymakers will lower the benchmark interest rate by 25 basis points to a range of 4.00%-4.25% at this meeting.
Cook's legal team strongly opposes this, arguing that an administrative stay could disrupt the FOMC voting and potentially have a real impact on domestic and international markets. They emphasize that the government has not specified any urgent circumstances that require an immediate stay of the ruling, and that administrative intervention may instead exacerbate market uncertainty.
It is worth noting that President Trump has long called for the Federal Reserve to cut interest rates to stimulate economic growth and has publicly criticized Federal Reserve Chairman Powell for maintaining interest rates this year
