A US federal judge has temporarily blocked President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, allowing her to remain in her role while she challenges her dismissal in court.

 

 

 

Judge Jia Cobb issued the ruling on Tuesday, September 9, just a week before a closely watched Federal Reserve meeting on interest rates. In her opinion, Cobb said Cook was “substantially likely” to succeed on some claims, including her argument that Trump’s move violated the Federal Reserve Act’s requirement that governors can only be removed “for cause.”

 

 

 

 

 

“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote, noting that her case marks the first attempted removal of a Fed governor in the institution’s 111-year history.

 

 

 

Trump, who has long pressured the Fed to cut interest rates more aggressively, did not respond to questions about the ruling when asked by reporters in Washington on Tuesday evening.

 

 

 

 

Cook’s attorney, Abbe David Lowell, welcomed the decision, saying it reaffirmed the need to protect the central bank from political interference. “Allowing the President to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law,” Lowell said.

 

 

 

The Trump administration has accused Cook of mortgage fraud, claiming she listed two different homes, one in Michigan and another in Georgia, as her primary residence in 2021 to secure favorable loan terms. Cook has denied wrongdoing.

 

 

 

In her opinion, Cobb questioned the nature of the accusations, stressing that “for cause” removals do not apply to conduct that occurred before an official began serving in office.

 

 

 

Trump announced last month on social media that he was firing Cook, escalating his efforts to reshape the Fed. He has frequently criticized Chairman Jerome Powell, once calling him “Mr. Too Late”, and demanded immediate rate cuts to counter the economic impact of tariffs.

 

 

 

Cook, who joined the board in 2022, made history as the first Black woman to serve as a Federal Reserve governor. Her reinstatement means she will take part in next week’s rate-setting

meeting while the lawsuit proceeds