What happened
A federal court in Washington, D.C., last night ruled that economist Lisa Cook (pictured above) can remain on the Federal Reserve Board of Governors while she appeals President Donald Trump’s unprecedented attempt to fire her. U.S. District Judge Jia Cobb said Trump’s claim that Cook committed mortgage fraud before she joined the Fed was not a “legally permissible cause” for her removal and Cook was not given due process to contest the unsubstantiated allegation. 

Who said what
Under the 112-year-old law that established the Federal Reserve, presidents can only fire Fed officials “for cause.” And the “best reading of the ‘for cause’ provision,” Cobb said in her ruling, is that it “extends only to concerns about the board member’s ability to effectively and faithfully execute their statutory duties, in light of events that have occurred while they are in office.”

Justice Department lawyers had argued that the president “had expansive powers to determine what constitutes cause and that the court should be ‘highly deferential’ to that interpretation,” The New York Times said. Cobb’s ruling “marked only the first salvo in what is likely to be a lengthy legal battle” over that question. But it was a “blow” to Trump’s “efforts to assert more control over the traditionally independent Fed” in pursuit of sharply lower interest rates, The Associated Press said.

What next?
Cobb’s decision means Cook “will likely be able to participate” in next week’s Fed rate-setting meeting, The Washington Post said, though the White House suggested it would quickly appeal the ruling. The Senate Banking Committee votes today on whether to advance Trump’s nominee for an open Fed seat, White House economic adviser Stephen Miran, meaning he might also participate in next week’s meeting.

What happened
Poland said early today that its military had shot down Russian drones that flew into its territory, prompting the closure or suspension of flights at Warsaw’s Chopin Airport and three smaller airports. Polish airspace was “violated by a huge number of Russian drones,” Prime Minister Donald Tusk said on social media. “Those drones that posed a direct threat were shot down” by Polish and NATO fighter jets. Poland’s military command called the incursion “an act of aggression.” 

Who said what
Poland’s downing of Russian drones, during Moscow’s latest massive overnight aerial assault on neighboring Ukraine, was the first time a NATO member “has fired shots in the war,” Reuters said. It “feels like an escalation by Moscow — testing the West’s response,” BBC Eastern Europe correspondent Sarah Rainsford said. Lone Russian drones had crossed into NATO airspace previously, but this bunch “didn’t just stray into Poland. They went deep enough for even Warsaw airport to be closed.”

The incursion “occurred at a time of heightened tension,” as Russia and Belarus prepare for joint military exercises across the Polish border, The Wall Street Journal said. It also “comes at an especially sensitive time diplomatically,” Politico said, as President Donald Trump weighs “whether there is any genuine prospect of a peace deal with his Russian counterpart Vladimir Putin.”

What next?
Sen. Dick Durbin (D-Ill.) said Russia’s “repeated violations of NATO airspace” offered “fair warning” that Putin “is testing our resolve to protect Poland and the Baltic nations,” and it “cannot be ignored.” Rep. Joe Wilson (R-S.C.) said Russia “attacking NATO ally Poland” was an “act of war” that Trump should respond to with sanctions “that will bankrupt the Russian war machine.”