In a significant legal decision, a U.S. appeals court recently blocked President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook from her position. The ruling comes just days before the highly anticipated FOMC meeting, which is expected to discuss crucial monetary policy decisions that could affect both domestic and global markets.

The court emphasized that the independence of the Federal Reserve must be preserved, particularly during times of economic uncertainty. Removing a sitting governor without proper legal grounds, the judges argued, could undermine the stability of financial markets and the credibility of U.S. monetary policy.

Lisa Cook, who has played a vital role in shaping the Fed’s economic outlook, is seen as a key figure in upcoming policy debates, especially concerning inflation control, interest rate adjustments, and financial stability. Her continued presence on the board signals that the Federal Reserve will maintain consistency in its approach, despite political tensions.

This ruling not only reinforces the autonomy of the Federal Reserve but also sends a broader message about the limits of presidential power in relation to independent institutions. As the FOMC prepares for its meeting, market participants worldwide will be watching closely for signals on the future direction of U.S. monetary policy.