Judge temporarily blocks Trump's move to oust Lisa Cook from the Fed

"The case will likely end up before the U.S. Supreme Court. The ruling by Federal District Judge Jia Cobb of Washington, D.C., marks a setback for Trump, who seeks to oust Cook over alleged mortgage fraud, despite her facing no charges. Cook's defense argued that the move was politically motivated and, according to her lawyers, the president intends to place allies in the central bank to force interest rate cuts."

"In her ruling granting a preliminary injunction, Judge Jia Cobb held that the arguments Trump cited to remove Cook did not meet the requirements of for cause, noting that the alleged irregularity occurred before she assumed her role as a Federal Reserve governor. Cook signed the mortgage documents in 2021, about a year before joining the board, after being nominated by president Joe Biden."

"The ruling also states that the Trump administration's Department of Justice actions against Cook violated the principle of due process, rejecting the idea that the president has broad powers to remove a governor in the manner he attempted. The best reading of the for cause' provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor's behavior in office and whether they have been faithfully and effectively executing their statutory duties, the ruling said."

A federal judge temporarily blocked President Trump's order to remove Federal Reserve Governor Lisa Cook, preserving her position while the legal dispute proceeds. The judge granted a preliminary injunction, finding the cited grounds did not satisfy the statutory 'for cause' standard because the alleged irregularity occurred before Cook assumed office. The ruling found Department of Justice actions implicated due process concerns and rejected expansive presidential removal powers in this instance. Posts by a federal agency director and White House social media statements were deemed insufficient evidence. Cook will be able to attend the Federal Reserve monetary policy meeting on September 1617 to vote.

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