A US federal judge has temporarily halted President Donald Trump’s bid to fire Federal Reserve Governor Lisa Cook, ruling that her removal likely violated the law.
Judge Jia Cobb granted Cook’s request to remain on the Fed board while her lawsuit proceeds, a decision that comes just a week before a closely watched Federal Reserve rate meeting.
In her opinion, Cobb found Cook “substantially likely” to succeed in claims that Trump breached the Federal Reserve Act since her dismissal failed to meet the statute’s “for cause” requirement. She added, “The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement.”
Cook’s attorney, Abbe David Lowell, praised the ruling, saying it “recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference.”
The case marks the first attempted removal of a Fed governor in the institution’s 111-year history. Cobb questioned the Trump administration’s accusations, stressing that “‘for cause’ thus does not contemplate removing an individual purely for conduct that occurred before they began in office.”
Trump, who has repeatedly pressured the central bank to lower interest rates, did not comment on the ruling when asked by reporters. He recently announced Cook’s removal on social media, citing allegations of mortgage fraud.
The accusations stem from claims that Cook listed two primary residences in 2021, one in Michigan and another in Georgia, to secure better mortgage terms.
Cook, who became the first Black woman to serve on the Fed board in 2022, continues to deny wrongdoing.
What you should know
Lisa Cook’s removal attempt is historic—no Federal Reserve governor has ever been ousted in the institution’s history.
The ruling underscores the legal and political battle over Fed independence as Trump intensifies efforts to influence monetary policy ahead of crucial rate decisions.
