Judge blocks Trump from removing Fed Governor Lisa Cook

A federal judge late Tuesday blocked President Donald Trump from removing Federal Reserve governor Lisa Cook, allowing her to remain on the central bank’s Board of Governors while she litigates her challenge to the dismissal. The temporary restraining order by U.S. District Judge Jia M. Cobb prevents Fed Chair Jerome Powell and the Board from effectuating Cook’s removal and clears the way for her to vote at the Federal Open Market Committee meeting that begins Sept. 16.

Trump announced Cook’s firing on Aug. 25, citing allegations from Federal Housing Finance Agency Director Bill Pulte that Cook committed mortgage fraud related to two properties she bought in 2021. Cook has denied the charges and has not been criminally charged. Her lawyers argued in court that the president lacks authority to remove a Fed governor absent cause, which courts have traditionally defined as misconduct, neglect of duty or similar wrongdoing, and that she was entitled to a hearing before any termination.

Judge Cobb said in her opinion that the public interest in Federal Reserve independence favored reinstatement. “The public interest in Federal Reserve independence weighs in favor of Cook’s...