In a surprise twist for the U.S. financial world, a federal appeals court on Monday hit pause on President Trump’s bid to remove Federal Reserve governor Lisa Cook 😮. The 2-1 decision said there’s "no need" right now to decide if the allegations meet the "for cause" standard – legal speak for being valid grounds to fire a Fed governor.
Thanks to this ruling, Cook can still attend and vote at the Federal Open Market Committee (FOMC) meeting as scheduled on Tuesday and Wednesday. That’s the big gathering where policymakers set interest rates and send ripples through global markets 📈.
Why it matters: From Mumbai to Manila, these interest-rate shifts can affect everything from student loan EMIs to startup funding. A small rate tweak in Washington can translate into bigger EMIs on your education loan or higher borrowing costs for your favourite fintech apps.
Background check: A federal judge had already blocked her removal on September 9, ordering Cook’s immediate reinstatement. Now, the Trump administration has just hours to take the fight to the Supreme Court before the FOMC meets.
Also on Monday, the U.S. Senate confirmed Stephen Miran, one of President Trump’s top economic advisers, to the Fed’s governing board in a tight 48-47 vote. Miran will serve the rest of Adriana Kugler’s term (ending in January) while taking unpaid leave from his White House Council of Economic Advisers chair role.
Bottom line: The race to shape U.S. monetary policy just got more interesting – stay tuned for how these moves could impact your wallet and the wider economy 🚀.
Reference(s):
U.S. appeals court lets Lisa Cook remain Fed governor for now
cgtn.com
