Trump Pushes Lisa Cook Battle Higher — Fed Cuts 25 bps in Policy Shift
President Donald Trump has asked the Supreme Court to review a ruling that allows Fed Governor Lisa Cook to stay in office.
Quick overview
- President Trump has petitioned the Supreme Court to review a ruling that allows Fed Governor Lisa Cook to remain in office after he attempted to remove her.
- The Justice Department filed the petition following a preliminary injunction that reinstated Cook, who participated in a recent Federal Open Market Committee meeting.
- The Fed recently cut rates by 25 basis points, a move supported by Cook, while Trump's nominee dissented in favor of a larger cut.
- Trump's efforts aim to influence the Fed's direction and potentially align its policies with his economic goals, impacting both monetary policy and the markets.
President Donald Trump has asked the Supreme Court to review a ruling that allows Fed Governor Lisa Cook to stay in office. The Justice Department filed the petition on Trump’s behalf to stay the preliminary injunction issued by the U.S. District Court. The injunction put Cook back in office after Trump tried to remove her for alleged mortgage fraud citing the Federal Reserve Act.
The petition comes after the Appeals Court denied Trump’s request to stay the ruling just hours before the Federal Open Market Committee (FOMC) meeting. Despite the uncertainty Cook participated in the FOMC meeting and voted in favor of the first rate cut of the year.
FOMC Cuts Rates
The Fed cut rates 25 bps in its latest move, the first of 2025. Cook and other officials supported the move while Stephen Miran, Trump’s nominee to replace Adriana Kugler, dissented and voted for 50 bps cut.
- Rate cut: 25 bps
- Miran’s dissent: 50 bps
- Objective: Support economic growth with mixed inflation signals
This triggered a big move in the crypto market with Bitcoin above $117,000 and Binance Coin (BNB) above $1,000. The move reflects the market’s optimism after the Fed’s surprise rate cut.
🚨UPDATE: Trump pushes to oust Fed governor Lisa Cook, testing presidential power, per The New York Times / Economic stability shouldn’t be a political pawn.
— lunasantosnews (@lunasantosnews) September 18, 2025
Trump Targets Fed Majority
Trump’s petition is part of his broader effort to influence the Fed. Since trying to remove Cook he has publicly complained the Fed is not cutting rates enough and even urged Chair Jerome Powell to cut more.
- Goal: Get a presidential aligned majority at the Fed
- Reason: Lower interest rates
- Market impact: Crypto and U.S. monetary policy
Replacing Cook could mean more rate cuts at the Fed and align with Trump’s economic goals. The Supreme Court’s decision on the stay request will have big implications for monetary policy and the markets.
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