"Federal District Judge Jia Cobb granted Cook a preliminary injunction, finding that the president's effort to remove Cook likely violated the Federal Reserve Act. Under that law, designed to insulate the central bank from political interference, Fed governors can only be removed "for cause." Judge Cobb found that in order to warrant firing, the cause would likely be limited to bad conduct while in office."
"Judge Cobb also ruled that Trump had likely violated Cook's right to due process and that firing Cook would result in "irreparable harm" to the Fed governor. "This ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference," Cook's attorney Abbe Lowell wrote in a statement. "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.""
Federal District Judge Jia Cobb granted a preliminary injunction blocking President Trump from firing Federal Reserve Governor Lisa Cook, finding the removal likely violated the Federal Reserve Act. The law allows removal of Fed governors only "for cause," which the judge said likely means misconduct while in office. Trump sought to remove Cook based on unproven allegations about a 2021 mortgage application made before her Fed appointment. Judge Cobb also ruled that Trump likely violated Cook's due process rights and that firing would cause "irreparable harm." Cook continues serving at the Fed while the case proceeds, raising concerns about protecting Fed independence as the president pressures the central bank to lower interest rates.
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