Appeals court allows Federal Reserve governor Lisa Cook to keep her job

illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:

🗞️ Driving the news: A federal appeals court has ruled that Federal Reserve Governor Lisa Cook can remain in her post, rejecting an attempt by the Trump administration to remove her just ahead of a critical Fed meeting on interest rates
• The court found that Cook was denied due process, as she was not informed of the accusations—mortgage fraud—and had no opportunity to respond before her attempted dismissal

🔭 The context: Cook’s removal would have marked the first time in the Fed’s 111-year history that a president dismissed a sitting governor
• The Federal Reserve Act allows removal only “for cause,” a standard intended to preserve the central bank’s independence
• Trump has long pressured the Fed to lower interest rates and has previously threatened to remove Fed Chair Jerome Powell
• The administration is expected to appeal to the Supreme Court

🌍 Why it matters for the planet: Political interference in central banks can undermine financial stability, credibility, and long-term economic planning—including the pricing of sustainable investment and climate risk
• Attempts to reshape the Fed to align with political interests risk weakening its autonomy, which is essential for maintaining inflation targets and managing economic transitions, including the shift to a low-carbon economy

⏭️ What's next: The Fed’s board will proceed with its two-day meeting starting Tuesday, where it is expected to consider an interest rate cut amid signs of economic cooling
• Cook’s presence ensures institutional continuity
• The legal battle over her removal may escalate to the Supreme Court, potentially revisiting long-standing precedent on the limits of presidential power over independent agencies

💬 One quote: “Allowing Trump’s firing would transform the Fed from a historically independent institution into an at-will body, leaving monetary policy at the mercy of the White House and its political whims.” – Attorneys for Lisa Cook

📈 One stat: More than 64,000 Palestinians have died in the Gaza war since October 2023, according to Gaza’s Health Ministry—adding urgency to global economic stability and humanitarian diplomacy amid rising geopolitical tensions

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