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A federal judge has blocked President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, per CNN.
On Tuesday (September 9), Judge Jia Cobb, a Biden appointee, granted Cook's request for a preliminary injunction, allowing her to remain in her position while legal proceedings continue over Trump's attempt to terminate her.
"President Trump has not identified anything related to Cook’s conduct or job performance that would indicate that she is harming the Board or the public interest by executing her duties unfaithfully or ineffectively," Cobb wrote in her decision.
The ruling comes weeks after Trump claimed to have fired Cook, marking the first time a president has attempted to remove a sitting Fed governor. The administration has suggested that it will appeal Cobb’s decision.
Cook, who was appointed by Biden, argued that Trump's attempt to fire her was part of a broader effort to undermine the Federal Reserve’s independence. Trump has cited alleged mortgage fraud as "cause" for Cook's removal. The allegations are currently under investigation by the Justice Department.
Cobb sided with Cook on Tuesday, saying her alleged misconduct didn't meet the threshold for removal.
"The Court finds that permissible cause for removal of a Federal Reserve Governor extends only to concerns about the Board member’s ability to effectively and faithfully execute their statutory duties," Cobb wrote.
Cook’s legal team also argued that Trump’s use of “cause” to remove her would undermine long-standing legal precedent.
"President Trump does not have the power to unilaterally redefine ‘cause’—completely unmoored to case law, history, and tradition," Cook’s attorneys wrote.
Following the ruling, attorney Abbe Lowell said in a statement, "This ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference."
The White House maintained that Trump had the authority to remove Cook, pointing to “credible allegations of mortgage fraud.”
White House spokesperson Kush Desai said, “This ruling will not be the last say on the matter, and the Trump Administration will continue to work to restore accountability and confidence in the Fed.”
Trump has frequently criticized the Fed for its interest rate policies and sought to gain control over the Board of Governors by removing appointees from the opposing party. If successful in ousting Cook, Trump would shift the balance on the seven-member board, which currently has four governors appointed by Democratic presidents.
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