Judge Jia Cobb Blocks Trump’s Bid to Fire Fed Governor Cook

Lead U.S. District Judge Jia Cobb on Wednesday granted a preliminary injunction preventing President Trump from removing Federal Reserve Governor Lisa Cook, ruling the allegations cited do not satisfy the “for cause” requirement.

Nut Graf Cobb’s injunction preserves the Fed’s long-held independence by underscoring that only misconduct occurring during a governor’s tenure can justify removal. The decision, issued just days before the Fed’s September policy meeting, signals a looming legal battle likely to reach the Supreme Court.

Main Part

Subhead: Legal Grounds for the Injunction

• Cobb interpreted the Federal Reserve Act’s “for cause” clause as limited to actions taken in office, finding that Trump’s fraud allegations predate Cook’s term.
• The judge concluded Cook is “substantially likely” to prevail on her claim that her removal violated statutory and constitutional protections.

Subhead: Political and Monetary Stakes

• Cook, the Fed’s first Black female governor, faces accusations of mortgage fraud relating to properties purchased in 2021-before her 2022 confirmation.
• Trump has pressured the Fed for immediate interest-rate cuts, and removing Cook would shift the board’s balance toward his appointees.

Subhead: Path Forward and Implications

• The Fed will retain Cook on its board pending appeal, ensuring her vote at the September 16-17 policy meeting.
• Both sides are expected to appeal rapidly, setting the stage for a Supreme Court review of presidential removal powers over Fed governors.

Subhead: Expert Reactions

• Cook’s counsel hailed the ruling as vital to safeguarding central bank independence.
• White House spokespeople defended the president’s authority to remove for cause and signaled ongoing legal efforts to challenge the injunction.

The case marks the first judicial test of a president’s power to dismiss a Federal Reserve governor and could redefine the boundaries of political influence over U.S. monetary policy.