President Donald Trump has filed an appeal to overturn a federal judge’s order that stopped him from removing Federal Reserve Governor Lisa Cook from her position, as Fox Business reports.

The case could ultimately make its way to the Supreme Court, setting up a high-stakes legal battle over the limits of presidential power and the protections afforded to Federal Reserve governors.

The appeal was submitted on Wednesday to the U.S. Court of Appeals for the District of Columbia Circuit. It followed a decision by U.S. District Judge Jia Cobb, who one day earlier temporarily blocked Trump’s move to oust Cook from the Federal Reserve Board.

Judge raises questions over removal

Judge Cobb ruled that Cook’s firing likely violated both the Federal Reserve Act and the Fed governor's due process rights. The law does not allow presidents to dismiss board governors at will, but only for reasons directly tied to their performance in office.

Cobb stated that removal grounds must be connected to whether a governor has faithfully carried out statutory duties. She added that Trump’s justification appeared to fall outside those boundaries, making the dismissal potentially unlawful.

Trump terminated Cook on Aug. 25, citing allegations of mortgage fraud. The decision quickly prompted a lawsuit just three days later, with Cook naming Trump, the Federal Reserve Board of Governors, and Fed chair Jerome Powell as defendants.

White House defends dismissal

The administration has stood by its decision to remove Cook. White House spokesperson Kush Desai said the president acted properly by dismissing her from what he described as a highly sensitive financial oversight role.

Desai argued that the allegations surrounding mortgage fraud provided legitimate grounds for termination. He added that the administration believes Cook was “lawfully removed” due to credible concerns about her conduct.

“This ruling is not the final word,” Desai said, signaling that Trump’s team plans to continue challenging the injunction that kept Cook in her role.

Cook responds to fraud claims

Cook’s legal team quickly disputed the validity of her firing. Her attorney, Abbe Lowell, filed a response on Sept. 2 contesting the president's action.

The allegations stem from mortgage fraud claims made by Federal Housing Finance Agency Director Bill Pulte. While the filings have raised questions about her financial and real estate dealings, Cook’s defense has emphasized that she was not involved in any fraudulent activity.

In addition to the lawsuit, the Justice Department opened a criminal investigation into the matter on Sept. 4. That probe is ongoing, though no charges have yet been filed against Cook.

Trump to pursue appeal

The White House has indicated it may seek an emergency pause of Cobb’s order while the appeal process moves forward. Such a move would allow Trump’s termination of Cook to stand until a higher court issues a final decision.

If the appeals court rules against the administration, the case could proceed to the U.S. Supreme Court. Legal experts have noted that the dispute touches on fundamental questions about the independence of the Federal Reserve.

At the center of the case is whether a president has authority to dismiss governors for reasons unrelated to their official duties, a question that has not been tested in modern times.

Broader implications awaited

The outcome could shape the balance of power between the executive branch and the central bank. Federal Reserve governors serve staggered 14-year terms and are intended to be insulated from political pressures.

By limiting removal to “for cause” situations tied to job performance, the law aims to protect monetary policy from short-term political influence. A ruling in Trump’s favor could open the door to broader presidential influence over the board.

For now, Cook remains in her position while the legal fight continues. Her lawsuit challenges both the legality of her firing and the fairness of the process, which she argues ignored her rights under the law.