Judge Delays Decision on Trump’s Bid to Remove Fed Governor Lisa Cook

US District Judge Jia Cobb postponed a ruling on whether President TRUMP can fire Federal Reserve Governor Lisa Cook, following an emergency court hearing. Cook's legal team, led by Abbe Lowell, seeks to maintain her role, including participation in upcoming Fed policy meetings. The Justice Department alleges Cook made contradictory representations on mortgage applications prior to her confirmation.

The case hinges on Cook's real estate disclosures. In June 2021, she purchased two properties weeks apart—one in Ann Arbor and another in Atlanta—both designated as primary residences on mortgage applications. This discrepancy forms the basis of the administration's removal argument.

Market participants are monitoring the situation closely, as Fed leadership stability impacts monetary policy decisions. The next two-day policy meeting begins September 16, with Cook's participation now contingent on judicial review.