Judge Blocks Trump’s Attempt to Fire Fed Governor
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, keeping Cook in her role.
Federal Reserve Independence Preserved
Judge Cobb will issue an order requiring the Federal Reserve to let Cook continue serving. The ruling comes just one week before the Fed’s next policy meeting, scheduled for September 16.
The Trump administration asked the judge to delay her decision to allow an appeal. Cobb denied the request, noting that public interest favors Cook remaining in her position.
“Cook is one of seven members of a Board designed to resist political pressure, not implement a President’s agenda,” Cobb explained.
Legal Basis for the Ruling
The judge concluded that Trump’s attempt to fire Cook likely violated the Federal Reserve Act. The law limits removal to actions related to a governor’s behavior in office. Cobb also found that Cook’s due process rights were at risk.
The ruling emphasized that removing Cook would cause irreparable harm. “The independence of the Federal Reserve is critical in helping the nation’s banking system promote stability,” Cobb wrote.
Criticism of the Administration
Cobb criticized the Trump administration for advancing what she called an “absurd” argument. They claimed the president could remove Cook without court oversight. The judge rejected this reasoning.
Reaction from Cook’s Team
Cook’s attorney, Abbe Lowell, praised the decision. He said the ruling “recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference.”
Lowell added that Cook will “continue to carry out her sworn duties as a Senate-confirmed Board Governor.”
