Washington, September 10, 2025 — A U.S. federal judge has temporarily halted President Donald Trump’s effort to remove Federal Reserve Governor Lisa Cook, in a decision that underscores the ongoing battle over the independence of America’s central bank.
The Court’s Ruling
District Judge Jia Cobb issued the injunction after reviewing the administration’s claim that Cook had engaged in mortgage fraud prior to her appointment in 2022. Cobb ruled that the “for cause” clause of the Federal Reserve Act only applies to misconduct occurring during a governor’s tenure, not before. The judge emphasized that allowing removals based on pre-appointment allegations could set a dangerous precedent and weaken the Fed’s autonomy.
Implications for Lisa Cook
The decision means that Cook will remain in her post while the case proceeds through the courts. She will continue to participate in upcoming monetary policy meetings, where the Fed faces crucial decisions on interest rates and inflation. Cook’s legal team welcomed the ruling, framing it as a critical safeguard against political interference in the central bank.
Allegations Under Scrutiny
The Trump administration has alleged that Cook misrepresented details on mortgage applications by designating multiple properties as primary residences. The Justice Department is reportedly investigating these claims, though Cook maintains that the disclosures were fully made during her Senate confirmation and that no wrongdoing occurred.
Unprecedented Territory
Never before has a sitting Federal Reserve governor faced removal under the “for cause” provision. Analysts warn that the case could reshape the balance of power between the White House and the Fed, raising concerns about whether future administrations might attempt to pressure the central bank by targeting individual governors.
What Comes Next
The legal battle is expected to continue for months, with the possibility of the case reaching the Supreme Court. For now, the ruling reinforces the Fed’s independence at a moment when economic challenges and political divisions are already testing the resilience of U.S. institutions.
Leave a Reply