On Tuesday, a U.S. federal judge barred President Donald Trump from dismissing Federal Reserve Board Governor Lisa Cook following the announcement made by the president in late August, which cited alleged misrepresentations on her mortgage applications.
The decision, issued by Judge Jia Cobb, came after Cook filed a lawsuit nearly two weeks ago seeking to prevent Trump from ousting her from the central bank. In her ruling, Cobb underscored the importance of the Federal Reserve’s independence, stating that public interest supported Cook’s continued service.
The injunction also prohibits Fed Chair Jerome Powell and the Board of Governors from enforcing Trump’s decision. Trump announced on August 25 that he was terminating Cook based on allegations from Federal Housing Finance Agency Director Bill Pulte, who accused her of mortgage fraud related to properties she owns in Georgia and Michigan—claims Cook firmly denies.
Cook, the first Black woman to serve on the Fed’s board, said she would not step down, insisting there was no legal justification for her removal and that the president lacked the authority to do so.
Trump has frequently criticized the Federal Reserve for their monetary policy decisions, particularly for not lowering interest rates as he has demanded. His move marks the first time a president has attempted to fire a sitting Fed governor.
According to the Federal Reserve Act, such removals are only permitted “for cause.” Cook’s attorney, Abbe Lowell, dismissed the idea that allegations could constitute valid grounds for termination during a recent court hearing.
