The White House’s push to remove Federal Reserve governor Lisa Cook has hit another setback after courts rejected allegations of mortgage fraud brought by President Donald Trump.

Cook’s term continues until 2038. She is the first Black woman to serve on the Fed board and has accused Trump of targeting her over her policy positions, filing a lawsuit in August against both the president and the central bank.

The dispute adds fresh tension ahead of Wednesday’s closely watched Fed decision, as policymakers weigh a slowing labor market against rising inflation pressures.

Senate Republicans confirmed a senior Trump economic adviser, Stephen Miran to the Federal Reserve’s Board of Governors, solidifying President Donald Trump’s effort to tighten his grip on the central bank ahead of its closely watched policy meeting.

The 48–27 vote came just hours before the US Court of Appeals for the District of Columbia Circuit rejected the administration’s bid to remove Lisa Cook, a Biden appointee, from the Fed board.

The ruling ensures Cook will remain in place for the two-day meeting beginning Tuesday, where policymakers are expected to announce an interest rate cut.

Miran’s confirmation marks a historic departure from precedent: for the first time in nearly a century, a sitting White House official will also serve as a Fed governor.

Miran, who currently chairs Trump’s Council of Economic Advisers, has said he will take unpaid leave from his administration role but will not resign a decision that has fueled questions about whether he can act independently.

Trump has long pressured the Fed to slash borrowing costs, often criticising Chair Jerome Powell and other officials for resisting his demands. While Powell has signaled a readiness to ease policy, Trump has demanded more aggressive action.

On Monday, he took to Truth Social to reiterate his stance, writing: “Powell must cut interest rates, now, and bigger than he had in mind. Housing will soar!!!”.