A federal judge has temporarily blocked former President Donald Trump from firing Federal Reserve Governor Lisa Cook, ruling that his attempt violated federal law and constitutional protections. U.S. District Judge Jia M. Cobb, who was appointed by President Joe Biden, issued a preliminary injunction on Tuesday ordering that Cook remain in her position as the case continues through the courts.
This marks the first instance in the Federal Reserve’s 111-year history that a president has tried to remove a sitting Fed governor. The Federal Reserve Act restricts removal of governors to “for cause” only, a measure designed to protect the central bank’s independence from political pressures.
Judge Cobb analyzed the legal language surrounding the “for cause” provision and wrote, “The best reading of the ‘for cause’ provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor’s behavior in office and whether they have been faithfully and effectively executing their statutory duties.” She emphasized that this provision does not extend to behavior prior to taking office.
Trump’s rationale for seeking Cook’s removal centered around a referral that accused her of improperly designating two homes as her “primary residence” in 2021—before she was appointed to the Federal Reserve Board. However, the judge found that because these allegations pertain to conduct before her tenure, they do not legally justify removal.
Lisa Cook has denied any wrongdoing and has never faced any criminal charges. Judge Cobb further found that Cook’s Fifth Amendment due process rights were probably violated since she was removed without prior notice or an opportunity for a hearing.
In her decision to grant the injunction, the judge wrote that Cook demonstrated she would face irreparable harm if removed and that the public interest and fairness support her remaining in office during the legal proceedings.
This ruling is a significant setback to President Trump’s efforts to exert direct influence over the Federal Reserve—a uniquely independent body established to manage monetary policy without partisan interference. Earlier this year, the Supreme Court allowed Trump to remove members of some labor and civil service boards, but expressly distinguished the Federal Reserve Board as a “uniquely structured, quasi-private entity” designed by Congress to be insulated from presidential control.
The case highlights the broader constitutional and statutory safeguards protecting the Federal Reserve’s autonomy, a cornerstone in maintaining economic stability free of political manipulation.