Judge Delays Ruling in High-Stakes Legal Challenge Over Trump’s Firing of Fed Governor Lisa Cook
Judge Delays Ruling in High-Stakes Legal Challenge Over Trump’s Firing of Fed Governor Lisa Cook
A U.S. District Judge has deferred an immediate ruling on President Donald Trump’s unprecedented attempt to remove Federal Reserve Governor Lisa Cook, instead ordering both parties to submit additional written arguments by next Tuesday. The decision, following a more than two-hour emergency court hearing yesterday morning, prolongs the high-stakes legal battle that has significant implications for the Federal Reserve’s independence.
Judge Jia Cobb, overseeing the case, indicated she was not fully convinced by arguments from either side. While pushing back on the Justice Department’s assertion that federal courts lack authority to question a presidential firing “for cause,” she also expressed discomfort with Cook’s lawyer’s claim that Trump’s stated reason for dismissal—allegations of mortgage fraud—was merely a pretext.
President Trump announced last Monday that he had fired Cook, citing the fraud allegations. This move marked the first time a Fed governor has been dismissed by a president and represents a significant escalation in Trump’s ongoing campaign against the central bank, which he has frequently criticized for its interest rate policies. Cook’s legal team contends she was not afforded adequate notice or an opportunity to defend herself against the allegations, which were primarily publicized via social media.
The legal challenge unfolds amidst Trump’s broader efforts to reshape the Fed’s Board of Governors. If Cook, a Biden appointee, is ultimately removed, it would leave only two Democratic-appointed governors on the seven-member board. The Federal Reserve is scheduled to convene for a crucial two-day policy meeting beginning September 16, where analysts widely anticipate the first interest rate cut since December.
Judge Cobb’s forthcoming decision, expected after the new arguments are submitted, will determine whether Cook can retain her seat on the board while her underlying claims are fully litigated, or if Trump’s firing stands.
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