Last month saw President Donald Trump remove Federal Reserve Governor Lisa Cook after she was accused of engaging in mortgage fraud.

However, the White House was left blindsided earlier this week after a divided appeals court allowed her to stay on. 

Appeals court allows lower court order to remain in effect

That's according to Breitbart, which cited an order put out by the U.S. Court of Appeals for the District of Columbia Circuit on Monday.

The order turned down a request made by the Trump administration to lift an injunction reinstating Cook which had earlier been imposed by a lower court.

Biden-appointed Judges Michelle Childs and Bradley Garcia concluded that Trump had not provided Cook with sufficient notice of her impending termination or given her an opportunity to respond to the allegations.

"The government may not prioritize any policy goal over the Due Process Clause," Garcia declared in writing his majority opinion.

Dissenting judge: Fraud "is an excellent" reason for Trump to fire Cook

Yet Trump-appointed Judge Gregory Katsas fired back with a sharply-worded dissent, writing, "Fraud is not just a permissible reason for removal. It is an excellent one."

Katsas further maintained that "[e]ven with expedition, judicial review can frustrate presidential action for months or even years."

Breitbart reported in August that the president sent Cook a letter on August 24 which explained that he was firing the Federal Reserve governor for cause.

🚨 President Donald J. Trump relieves Federal Reserve Governor Lisa Cook of her position pic.twitter.com/tJV8m4mlHW

— Rapid Response 47 (@RapidResponse47) August 26, 2025

"The Federal Reserve has tremendous responsibility for setting interest rates and regulating reserve and member banks," Trump asserted.

Federal reserve governor said to have listed two homes as her primary residence

"The American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve," he stressed.

"In light of your deceitful and potentially criminal conduct in a financial matter, they cannot and I do not have such confidence in your integrity," the president went on to add.

The Hill noted how Federal Housing Finance Agency head Bill Pulte has asserted that Cook had committed mortgage fraud by listing both a home in Michigan along with a condo in Atlanta as being her primary residence.

The website pointed out that Pulte produced photographs which allegedly showed Cook's signature on financing documents which referenced the two properties in question.