By Eniola Amadu
A US federal judge has blocked President Donald Trump’s bid to dismiss Federal Reserve Governor Lisa Cook, calling the move unlawful and unprecedented.
In a ruling delivered in Washington, Judge Jia Cobb, appointed by former President Joe Biden, granted Cook a preliminary injunction, ensuring she remains in office while the case continues.
Cobb said the president had not shown that Cook had failed in her duties or acted against the public interest.
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“President Trump has not identified anything related to Cook’s conduct or job performance as a Board member that would indicate she is harming the Board or the public interest by executing her duties unfaithfully or ineffectively,” the judge wrote.
The ruling followed Trump’s announcement weeks earlier that he had fired Cook — the first time in US history a sitting president has attempted to remove a Federal Reserve governor. The administration is expected to appeal.
Judge Cobb noted that Cook’s dismissal raised serious constitutional issues, including whether the president has the authority to redefine “cause” for removal.
She added that Cook had made a strong case that her firing violated the Federal Reserve Act’s “for cause” protection, designed to shield governors from arbitrary political interference.
Trump had cited allegations of mortgage fraud — now under Justice Department investigation — as grounds for Cook’s removal. But the court ruled such allegations must relate to actions taken during her service on the Board to justify dismissal.
“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, in light of events that have occurred while they are in office,” Cobb wrote.
Cook’s lawyers argued that Trump was attempting to bypass a Supreme Court decision earlier this year, which reinforced limits on presidential power to remove Federal Reserve officials. They said the president’s interpretation of “cause” would allow him to oust members simply over policy disagreements.
Cobb warned that adopting the government’s reasoning would lead to an “absurd result,” undermining the independence of the Federal Reserve.
Following the ruling, Cook’s attorney, Abbe Lowell, welcomed the decision, saying it reaffirmed the importance of insulating monetary policy from political pressure.
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“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,” Lowell said.
