By Ben Casselman Colby Smith

Copyright

A federal appeals court on Monday denied a last-minute attempt by President Trump to fire Lisa Cook, a Federal Reserve governor, and prevent her from participating in a crucial two-day Fed meeting to set interest rates.

As a result, Ms. Cook will be able to cast a vote at the gathering, which begins on Tuesday.

The ruling marked the second legal defeat for Mr. Trump in his quest to oust Ms. Cook, whom he has accused of engaging in mortgage fraud. Ms. Cook has not been charged with a crime. Mr. Trump has moved to stack the central bank with a roster of political loyalists, and separately on Monday, he secured confirmation of one of his top advisers to another open slot on the Fed’s board of governors.

The decision from the U.S. Court of Appeals for the District of Columbia Circuit upheld the work of a lower judge, who temporarily blocked Mr. Trump earlier this month from firing Ms. Cook while the two sides war over the legality of her potential dismissal. If Mr. Trump had prevailed, Ms. Cook’s lawyers warned, it could have rattled financial markets and plunged the politically independent central bank into uncharted waters.

The ruling was supported by two of the three appellate judges, who flagged the risks associated with removing Ms. Cook, given that she had continued to serve in her role despite the president’s attempted firing.