The Federal Court prevents Lisa Cook dismissal

President Donald Trump cannot oust the governor of the federal reserve, Lisa Cook, of his role, judged a federal court of appeal.

The 2-1 Monday decision is a blow for Trump because it means that Cook can now remain in place for the Fed political meeting on Tuesday and Wednesday, where it should reduce American interest rates.

Trump announced in August that he dismissed Cook on the grounds that she had committed mortgage fraud. Cook denied allegations and said the president did not have the power to dismiss it.

The case has ramifications for the Fed capacity to set interest rates without interference by politicians.

Cook is part of the board of directors responsible for setting interest rates in the United States.

When the Fed was created in 1913, the congress included provisions which kept it independent of politics. No president has ever deleted a Fed governor.

The laws under which Trump said he had the right to dismiss Cook was never tested before the court. The Trump administration is expected to make the decision on Monday before the Supreme Court.

Under the law which created the Fed, its governors cannot be removed by a president “for good”, although the law does not define the term or establish the procedures of referral.

Cook, a person named Biden and the first black woman to serve as Fed governor, continued Trump in August, saying that she was dismissed for his monetary policy position.

The Fed has not reduced interest rates so far this year while it is trying to keep inflation under control. Prices that are partially increasing due to the impact of Trump prices on goods imported into the country.

Trump has repeatedly demanded aggressive rate discounts, repressing the president of the Fed, Jerome Powell, on monetary policy.

A reduction is expected this week, however, to stimulate a slow labor market in the United States.

Trump reiterated his call for a decrease in major interest rates on Monday, writing on his social platform for truth that fed President Jerome Powell “must reduce interest rates, now and bigger than he had in mind.”