A U.S. federal judge has temporarily barred President Donald Trump from removing Federal Reserve Governor Lisa Cook, allowing her to remain in office while she challenges her dismissal in court.
Judge Jia Cobb issued the ruling on Tuesday, September 9, just one week before a pivotal Fed meeting on interest rates. In her opinion, Cobb said Cook was “substantially likely” to prevail on key claims, including her argument that Trump’s move violated the Federal Reserve Act, which permits governors to be removed only “for cause.”
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote, noting that this marks the first attempted removal of a Fed governor in the institution’s 111-year history.
Cook’s attorney, Abbe David Lowell, praised the ruling, saying it reinforced the importance of shielding the central bank from political interference. “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,” Lowell said.
The Trump administration has accused Cook of mortgage fraud, alleging she claimed two different homes—one in Michigan and another in Georgia—as her primary residence in 2021 to obtain better loan terms. Cook has denied the allegations. Judge Cobb also questioned the relevance of such claims, stressing that “for cause” removals cannot be based on conduct predating an official’s tenure.
President Trump, who has long pressured the Fed to slash interest rates, declined to comment on the ruling when asked by reporters Tuesday evening. Last month, he announced via social media that he was firing Cook, intensifying his broader push to reshape the central bank. Trump has frequently criticized Fed Chairman Jerome Powell—once calling him “Mr. Too Late”—and demanded swifter rate cuts to offset the economic fallout of tariffs.
Cook, who joined the Federal Reserve Board in 2022, made history as the first Black woman to serve as a governor. Her reinstatement means she will participate in next week’s high-stakes rate-setting meeting as her lawsuit moves forward.