Federal Judge Temporarily Blocks Trump’s Firing of Fed Governor Lisa Cook, Citing Independence Concerns

A federal judge in Washington D.C. has temporarily halted President Trump’s attempt to remove Federal Reserve Governor Lisa Cook, issuing a preliminary injunction late Tuesday night. The ruling represents a significant setback to Trump’s efforts to exert greater influence over the independent central bank, at least for the immediate future.

District Judge Jia Cobb granted the injunction, determining that the President’s move to fire Cook likely violated the Federal Reserve Act. This crucial legislation is designed to shield the central bank from political interference, stipulating that Fed governors can only be dismissed “for cause,” a condition the judge indicated would likely be limited to misconduct during their tenure.

Trump had sought to dismiss Cook based on unsubstantiated allegations regarding false statements on a mortgage application from 2021, prior to her appointment to the Fed board. Judge Cobb also found that the President likely infringed upon Cook’s right to due process and that her removal would inflict “irreparable harm” upon the Fed governor.

Abbe Lowell, Cook’s attorney, lauded the decision, stating, “This ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal 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.”

The President’s bid to fire Cook, announced via a social media post last month, is part of a broader campaign to pressure the central bank into more rapid interest rate reductions. Cook has continued her duties at the Fed as the legal proceedings unfold.

The incident has intensified concerns regarding the Fed’s long-standing autonomy in setting interest rates, a critical function for both the U.S. and global economies. Trump is actively working to reshape the Fed’s seven-member governing board, with a current vacancy following Adriana Kugler’s surprise resignation in August. The President has nominated Stephen Miran, a White House economic adviser, to fill Kugler’s role, with Miran’s Senate confirmation hearing held last week and a vote pending. Had Cook’s firing been successful, it would have created a second vacancy, potentially allowing Trump appointees to form a majority on the board. Two Trump-appointed governors notably dissented and voted for a rate cut during the last Fed meeting in July. The central bank’s next rate-setting meeting is scheduled for this coming week, with expectations for a quarter-percentage-point cut in response to a weakening job market.

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