A side-by-side image of President Donald Trump and Federal Reserve Governor Lisa Cook. ( Andrew Harnik/Al Drago/Getty Images/Getty Images)
"When Governors by misconduct or gross neglect erode the foundations of such confidence, the President acts properly and lawfully by removing them," Justice Department attorneys said in appealing the case to the U.S. Court of Appeals for D.C.
The 2-1 ruling from the appeals court is a near-term blow to the Trump administration. It comes after Trump announced on social media last month that he would be firing Cook from her position on the independent Fed board due to allegations of mortgage fraud.
Cook's lawyers immediately sued Trump over his attempt to remove her far before the end of her 14-year tenure, arguing that he did not have sufficient cause to do so. Cook has denied any wrongdoing.
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The landmark case is the first attempt by a sitting president to oust a Federal Reserve governor "for cause," and it is almost certain to be kicked to the Supreme Court for review.
This is a breaking news story. Check back for updates.
Breanne Deppisch is a national politics reporter for Fox News Digital covering the Trump administration, with a focus on the Justice Department, FBI, and other national news.
https://www.foxnews.com/politics/appeals-court-blocks-trump-from-firing-feds-lisa-cook-setting-stage-scotus-clash