Federal Judge Blocks Trump's Attempt to Fire Fed Governor Lisa Cook

Federal Judge Blocks Trump's Attempt to Fire Fed Governor Lisa Cook

2025-09-10 politics

Washington, D.C., Wednesday, 10 September 2025.
A U.S. District Judge has issued a temporary restraining order allowing Federal Reserve Governor Lisa Cook to remain in her position amidst allegations of mortgage fraud.

Judge’s Decision Highlights Federal Reserve Independence

U.S. District Judge Jia M. Cobb, appointed by former President Joe Biden, issued a ruling on September 9, 2025, allowing Lisa Cook to remain in her role as a Federal Reserve Governor despite President Donald Trump’s efforts to dismiss her. The judge’s decision underscores the importance of Federal Reserve independence and cites the ‘for cause’ provision, which limits removal to conduct related to official duties, not actions prior to appointment [1][2][3].

President Trump announced Cook’s removal on August 25, 2025, citing allegations of mortgage fraud concerning properties purchased in 2021. These claims emerged after being referred by Bill Pulte, Director of the Federal Housing Finance Agency, but Cook has not been charged with any crime [4][5][6]. Cook’s attorneys argue that her removal breaches the Federal Reserve Act and lacks legal grounds, as the alleged actions occurred before her appointment [1][3][6].

Political Implications and Next Steps

This legal battle marks a significant challenge to the Trump administration’s attempts to exert control over the Federal Reserve, an institution designed to be insulated from political influence. The temporary restraining order allows Cook to participate in upcoming Federal Reserve meetings, including one on September 16-17, 2025, where a potential interest rate cut is expected [5][6][7]. The case is expected to continue, potentially reaching the Supreme Court for a final decision on the presidential authority to remove a Federal Reserve governor [1][4][8].

Historical Significance and Broader Impact

This situation is unprecedented as no U.S. president has previously attempted to dismiss a Federal Reserve governor. Cook, the first Black woman to serve on the Federal Reserve Board, continues to fulfill her duties amidst ongoing legal proceedings. Her case has garnered attention from economists and legal experts who emphasize the importance of maintaining the Federal Reserve’s independence to ensure economic stability and public trust [3][5][9].

Sources


Federal Reserve Lisa Cook