Federal Reserve's Cook keeps her seat after legal battle with Trump

In the United States, the Federal Reserve convened a pivotal policy meeting on September 16-17, 2025, under unprecedented circumstances. The focus of attention was on whether the governing board would announce a cut in interest rates, a move the Trump administration had been advocating for months. Lisa Cook, one of the governors, was in attendance after a federal judge halted President Trump's efforts to remove her from the board. A federal appeals court ruled that Cook had not been afforded due process, allowing her to remain in her position and participate in the vote on interest rate adjustments. The two-day meeting was tumultuous, reflecting the increasing pressure on the Fed from the Trump administration regarding interest rate policies. Cook's situation is particularly notable as she is the first Fed governor subjected to a firing attempt. Her legal battle has drawn significant media attention and highlights the conflicts between the political sphere and the traditionally autonomous Federal Reserve. During the meeting, other members discussed recent economic trends, including job growth statistics reflecting a weak labor market. An average of 29,000 jobs were added over a three-month period up to August, putting further emphasis on the Fed's need to consider rate cuts as part of their economic strategy. The board aimed to address concerns related to tariffs imposed by the Trump administration, with projections indicating possible temporary inflation despite rising consumer price levels. The outcome of these discussions will likely influence the Fed's rate decisions going forward, particularly as Fed Chair Jerome Powell mentioned alarming job market trends and the need to act decisively. There are expectations of interest rate cuts, which would mark the first change in this regard since December, demonstrating the Fed's responsiveness to mounting economic pressures. The implications of these decisions could affect employment levels and economic stability significantly, making this meeting one of the most extraordinary in the Federal Reserve's history.