A U.S. federal judge has temporarily blocked President Donald Trump from firing Federal Reserve Governor Lisa Cook, delivering a sharp rebuke to the White House just days before a pivotal interest-rate decision.
Judge Jia Cobb granted Cook’s request for an injunction to remain on the Fed board while her lawsuit challenging the dismissal moves forward.
In her ruling, Cobb said Cook was “substantially likely” to prevail on key claims — including that her removal violated the Federal Reserve Act, which stipulates that governors can only be dismissed “for cause.”
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote, underscoring the potential damage of political interference at the central bank.
Cook’s attorney, Abbe David Lowell, hailed the decision, saying it “reaffirms the importance of safeguarding the Fed’s independence from unlawful political meddling.” Allowing Trump’s move to stand, he warned, “would endanger the stability of our financial system and undermine the rule of law.”
The ruling marks the first challenge of its kind in the Fed’s 111-year history. Cobb questioned the administration’s justification for Cook’s removal, noting that “for cause” does not extend to alleged conduct predating her appointment.
Trump, who has repeatedly pressured the Fed to slash rates more aggressively, did not answer questions about the ruling as he left a Washington restaurant Tuesday night.
The president claimed last week that he was firing Cook over accusations of mortgage fraud, alleging she declared two properties — one in Michigan and another in Georgia — as primary residences in 2021 to secure favorable loan terms.
Cook, who became the first Black woman to serve on the Fed’s Board of Governors in 2022, has denied wrongdoing.
Trump’s attempt to remove Cook escalates his broader clash with the central bank, where Chair Jerome Powell has resisted White House pressure to accelerate rate cuts amid uncertainty over the economic fallout from tariffs.
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