A federal judge has blocked President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook.
“At this preliminary stage, Cook has made a strong showing that her removal violated the Federal Reserve Act’s ‘for cause’ provision,” U.S. District Judge Jia Cobb wrote Tuesday evening. She granted a preliminary injunction, allowing Cook to remain in her role.
The ruling comes just one week before the Fed’s next policy meeting, scheduled for September 16, and preserves the independence of the Federal Reserve. Judge Cobb will issue an order requiring the Fed to let Cook continue serving.
Judge Cobb noted that Trump’s attempt to fire Cook likely violated the Federal Reserve Act, which limits removal to actions related to a governor’s behavior in office. She also emphasized that Cook’s due process rights were at risk and that removing her could cause irreparable harm to the Fed’s independence.
“Cook is one of seven members of a Board designed to resist political pressure, not implement a President’s agenda,” Cobb explained.
Cobb criticized the Trump administration for claiming the president could remove Cook without oversight, calling the argument “absurd.” Cook’s attorney, Abbe Lowell, praised the ruling, saying it safeguards the independence of the Federal Reserve and allows Cook to continue fulfilling her duties as a Senate-confirmed Board Governor.
