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September 10, 2025
⚖️ A U.S. federal judge has issued a preliminary injunction preventing President Donald Trump from removing Federal Reserve Governor Lisa Cook, marking a significant legal challenge to presidential authority over independent agencies. The ruling allows Cook to remain in her position while her lawsuit against the administration proceeds.
Judge Jia Cobb of the District Court in Washington, D.C. found that Trump’s attempt to dismiss Cook—based on unproven mortgage fraud allegations—likely violated the Federal Reserve Act’s “for cause” provision, which limits removal to misconduct occurring during a governor’s term. Cobb also cited potential violations of Cook’s due process rights under the Fifth Amendment.
Cook, the first Black woman to serve on the Fed’s Board of Governors, denies any wrongdoing. Her legal team argues that the allegations relate to conduct prior to her Senate confirmation in 2022 and do not meet the legal threshold for dismissal.
🏛️ The Trump administration is expected to appeal the decision, setting the stage for a broader constitutional debate over executive power and central bank independence. The case may ultimately be decided by the U.S. Supreme Court.
Cook is now expected to participate in the upcoming Federal Reserve policy meeting on September 16–17, where interest rate decisions are anticipated. The outcome of this case could have lasting implications for the autonomy of the Federal Reserve and its role in shaping U.S. monetary policy.
Marriner_S._Eccles_Federal_Reserve_Board_Building
