Overview

• U.S. District Judge Jia Cobb held the first hearing Friday on Lisa Cook’s bid for a restraining order, took no immediate action, and set further filings for Tuesday.
• The Justice Department urged deference to the president, arguing the perception of financial misconduct is intolerable for a senior financial regulator and saying Cook has offered no explanation in her filings.
• Cook’s lawsuit argues alleged pre-appointment conduct cannot constitute “for cause” removal and says the mortgage claims are a pretext to open a seat for a lower-rate ally; she seeks to remain on the board during the case.
• FHFA Director Bill Pulte publicized additional allegations tied to a Cambridge condo, which Cook’s attorney called a smear; Cook has not been charged with a crime.
• Legal analysts expect appeals and a potential Supreme Court review, with the outcome carrying significant implications for Fed independence and the board’s balance if the removal stands.