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US President Donald Trump Challenges Block on Removing US Fed’s Lisa Cook

US President Donald Trump Challenges Block on Removing US Fed’s Lisa Cook

Attention shifts to the Fed’s independence and upcoming rate cut,as US President Donald Trump disputes Lisa Cook’s role

Written by Rahul Dhingra, Edited by David Delima | Updated: 15 September 2025 19:28 IST

US President Donald Trump Challenges Block on Removing US Fed’s Lisa Cook

Photo Credit: Unsplash/Joshua Woroniecki

Trump’s appeal to oust Fed Governor Lisa Cook adds new uncertainty for markets and crypto investors.

Highlights

An appeals court blocked the removal of Fed Governor Lisa Cook
The case coincides with the expected Fed interest rate cut this week
Crypto investors eye policy uncertainty and Fed independence

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US President Donald Trump has filed an appeal in the case concerning Federal Reserve Governor Lisa Cook, escalating a legal dispute that comes just days before the central bank is expected to cut interest rates. The appeal challenges a district court's September 9 injunction blocking Trump's earlier attempt to remove Cook, arguing the president has the authority to dismiss a Fed governor “for cause”. The administration also maintains that such removal decisions should not be subject to judicial review.

Fed Independence Under Scrutiny as US President Pushes to Remove Lisa Cook

The administration's case completely rests upon the allegations that Cook misinterpreted information in her loan documents and engaged in “deceitful and potentially criminal conduct” in mortgage agreements. To counter this, Cook has argued that the decision would mean a violation of her process rights and a misuse of presidential powers. She further argues that the administration's claims are misinterpreted, as the Atlanta property is listed as a second home rather than her primary residence in the 2021 loan summary.

🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW
— Rapid Response 47 (@RapidResponse47) August 26, 2025

The timing of the appeal coincides with a closely watched Federal Reserve policy meeting, where markets expect the first rate cut since December 2024, likely by 25 basis points, with a smaller chance of a 50 basis point move. The Fed's independence will be a matter of concern as it makes decisions that affect both traditional and digital markets.

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For crypto markets, the case adds an extra layer of uncertainty at a pivotal point. Federal Reserve policies act as a major factor in the price volatility of Bitcoin and other digital assets, as interest rate cuts are generally observed as supportive for risk assets. If the Fed proceeds with easing, it could inject liquidity into markets, boosting demand for cryptocurrencies.

Questions surrounding the Fed's future and the political influence on it may weigh on investor sentiment. For the crypto sector, which is already highly sensitive to shifts in monetary policy and macroeconomic confidence, the Cook dispute may result in intensified price swings in the coming few weeks.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: US President Donald Trump, Donald Trump, Fed rate cut

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More