In a significant blow to the White House, a federal judge has issued a preliminary injunction blocking President Donald Trump’s effort to remove Federal Reserve Governor Lisa Cook. The ruling allows her to remain on the Board of Governors as her lawsuit against the administration proceeds.
U.S. District Judge Jia M. Cobb, presiding over the case in Washington, D.C., determined that Trump likely violated the Federal Reserve Act by attempting to fire Cook without proper cause. The law permits removal of a governor only for misconduct during their term in office Grounds Judge Cobb found absent in the mortgage fraud allegations cited by the administration, which date to before Cook’s appointment.
The injunction ensures Cook can take part in the upcoming Federal Reserve policy meeting scheduled for September 16–17, where she would otherwise have had a vote in decisions about potential interest rate cuts.
The case is poised to escalate, possibly reaching the Supreme Court as a major legal test of the president’s power over central bank leadership. Analysts warn that allowing unchecked political interference could undermine monetary policy independence.
Cook, the first Black woman appointed to the Fed’s Board, denies any wrongdoing. Her legal team argues that she was denied due process and that the firing attempt is politically motivated. Meanwhile, the Justice Department is reportedly investigating the mortgage claims linked to her, but no charges have been filed.
Cobb emphasized that political disagreements or prior allegations should not override statutory protections intended to safeguard the Federal Reserve’s independence. The ruling underscores judicial checks on executive power, especially concerning monetary policy institutions.
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