Trump Blocked from Firing Fed’s Cook Ahead of Crucial Interest Rate Decision

A U.S. District Judge has temporarily blocked former President Trump's attempt to remove Federal Reserve Governor Lisa Cook over allegations of mortgage fraud. The ruling ensures Cook's participation in the upcoming FOMC meeting, where critical interest rate decisions will be made.

Judge Jia Cobb cited violations of the Federal Reserve Act's 'for cause' provision, emphasizing that pre-office conduct doesn't justify removal. The WHITE House has vowed to appeal, setting the stage for a legal battle that could test the boundaries of Fed independence.

Market observers warn the controversy could inject volatility into financial markets, particularly during a sensitive period for monetary policy. The Fed's upcoming decisions may now face heightened scrutiny amid political tensions.