An appeals court has blocked Donald Trump’s attempt to fire Lisa Cook, the governor of the US Federal Reserve, in the latest step in a legal battle that threatens the central bank’s longstanding independence.

The president previously ordered Ms Cook’s removal over untested allegations of mortgage fraud, which she denies.

It marked the first time in the Federal Reserve’s 111-year history that a president has sought to remove one of its governors.

On Monday, the US Court of Appeals for the District of Columbia Circuit ruled that Ms Cook can keep her seat ahead of the Fed’s policy meeting on Tuesday and Wednesday, where it is expected to cut interest rates to shore up a cooling labour market.

The ruling came on the same day that the US president expanded his influence over the world’s most important central bank after Stephen Miran, his top economic advisor, was handed one of 12 interest-rate-setting votes on the eve of the key policy meeting.