Court Blocks Trump’s Attempt to Remove Fed Governor Lisa Cook in Unprecedented Legal Clash

A federal judge has temporarily halted former President Donald Trump's unprecedented bid to oust Federal Reserve Governor Lisa Cook, marking the first legal test of a president's authority to dismiss a central bank official "for cause." Judge Jia Cobb's late-night ruling grants Cook a preliminary injunction, preserving her position while the case proceeds.

The controversy stems from Trump's August 25 announcement terminating Cook over decade-old real estate transactions. The former president cited allegations by FHFA Director Bill Pulte that documents Cook signed before joining the Fed constituted mortgage fraud—claims she vehemently denies. Legal experts note the case turns on whether pre-appointment conduct qualifies as removable offenses under the Federal Reserve Act.

Judge Cobb's opinion suggests Trump's interpretation stretches statutory limits. "'For cause' does not contemplate removing an individual purely for conduct that occurred before they began in office," she wrote, emphasizing the Fed's designed insulation from political interference. The WHITE House maintains its position remains legally sound despite the judicial setback.