A federal judge in Washington has blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, ruling that the president’s attempt likely violated legal protections for the central bank’s independence.
U.S. District Judge Jia Cobb issued a preliminary injunction late Tuesday, finding that Cook’s claim of improper dismissal had a strong likelihood of success. The decision requires that Cook, a Biden appointee, remain on the Board of Governors while the case continues.
The Federal Reserve Act permits removal of governors only “for cause,” a safeguard designed to shield the institution from political influence. The Trump administration argued that allegations of mortgage fraud, now under investigation, provided grounds for dismissal. Cobb rejected that reasoning, concluding that removal must be tied to conduct directly affecting a governor’s ability to carry out official duties. She also dismissed the administration’s claim that the president’s removal decisions cannot be reviewed by the courts, calling such an argument inconsistent with the law. Cobb wrote that such a position would effectively allow the White House to sidestep legal protections by recasting policy disagreements as misconduct. “Such a rule would provide no practical insulation for the members of the Board of Governors,” she stated.
Cook’s attorneys said the ruling reaffirmed the principle that the Federal Reserve must operate free from political control. “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,” attorney Abbe Lowell said in a statement.
The dispute highlights an ongoing conflict between the Trump administration and the Federal Reserve, which the president has frequently criticized over its handling of interest rates. Earlier this year, Trump considered removing Chair Jerome Powell but backed down after advisers warned it could destabilize financial markets. By targeting Cook instead, the White House aimed to shift the balance on the seven-member Board, where a successful removal would leave only two governors appointed by a Democratic president.
The injunction ensures that Cook will remain in her post as the Federal Reserve prepares for its September 16 policy meeting, where officials are expected to consider the first interest rate cut since last year. The administration is expected to appeal the ruling.
A federal judge has ruled that the John F. Kennedy Center for the Performing Arts cannot be officially renamed after President Donald Trump, concluding that the institution's governing board lacked the legal authority to make the change.In a decision issued Friday, U.S. District Judge Christopher Cooper declared that Congress named... Read More »
A federal judge in Virginia has temporarily halted the operation of the Justice Department's newly created $1.776 billion Anti-Weaponization Fund while a lawsuit challenging the program's legality moves forward in court.U.S. District Judge Leonie Brinkema issued the order on May 29, barring federal officials from transferring money into the fund,... Read More »
A federal appeals court has blocked an executive order issued by President Donald Trump that sought to suspend asylum access at the southern border, ruling that federal immigration law guarantees migrants the right to apply for protection and limits the president’s authority to override that process. In a decision released... Read More »
A federal judge in Washington, D.C., has blocked an executive order issued by President Donald Trump that sought to cut federal funding for National Public Radio and the Public Broadcasting Service, ruling the directive unconstitutional under the First Amendment. U.S. District Judge Randolph D. Moss held that Executive Order 14290... Read More »
A federal judge in Washington has ordered construction to stop on President Donald Trump’s $400 million White House ballroom project, ruling that the administration cannot proceed without approval from Congress. In a March 31 decision, U.S. District Judge Richard Leon granted a preliminary injunction requested by the National Trust for... Read More »
