Trump’s Fed Governor Lisa Cook: Judge Blocks Removal Attempt

A federal judge has blocked President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook.

U.S. District Judge Jia Cobb issued a preliminary injunction requiring the Federal Reserve to let Cook continue serving in her role as a governor of the Federal Reserve System as her lawsuit moves through the courts.

Cobb’s decision comes one week ahead of the Federal Reserve’s next meeting, which is scheduled to begin on Sept. 16.

While the Trump administration asked the judge to delay her decision to allow an appeal, she denied their request, in part, because the public interest favors Cook staying in her role.

“Cook is one of seven members of a Board that is, by design, not intended to be susceptible to policy pressure, let alone tasked with implementing the President’s agenda,” Cobb wrote.

Cobb concluded that Trump’s attempted firing of Cook likely violated the Federal Reserve Act, which limits the basis for firing a Governor to their behavior in office, and ran afoul of Cook’s due process rights.

“President Trump has not stated a legally permissible cause for Cook’s removal,” Cobb wrote.

She added that Cook demonstrated that her removal would cause irreparable harm, writing that the independence of the Federal Reserve is “critical in helping the nation’s ‘banking system to promote stability.'”

Cobb also criticized the Trump administration for advancing an “absurd” argument about the scope of the president’s power, which they argued allowed Trump to not only remove Cook but also barred a court from reviewing his action.

Cook’s attorney applauded the Tuesday evening ruling, saying it “recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference.”

The statement added that Cook will “continue to carry out her sworn duties as a Senate-confirmed Board Governor.”

Last month, Trump called on Cook to resign on the same day that Bill Pulte, the director of the Federal Housing Finance Agency, posted on X part of an Aug. 15 letter sent to U.S. Attorney General Pam Bondi accusing Cook of falsifying bank documents and property records to acquire more favorable loan terms, “potentially committing mortgage fraud,” the letter stated.

In a statement provided to ABC News at the time, Cook said she learned from the media about Pulte’s letter seeking a criminal referral over the mortgage application, which predated her time with the Federal Reserve.

“I have no intention of being bullied to step down from my position because of some questions raised in a tweet,” Cook said in the statement last week. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts.”

Cook was nominated to serve on the board of governors in 2022 by former President Joe Biden. Her term runs until January 2038. Cook is the first Black woman in history to serve on the Federal Reserve Board of Governors.