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13h ago

Judge to Weigh Lisa Cook’s Emergency Bid to Block Trump’s Firing After New Referral

The case tests the Federal Reserve Act’s vague ‘for cause’ removal limit on governors.

FILE - Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)
Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 23, 2025. REUTERS/Jim Urquhart/File Photo
FILE - Federal Reserve Chairman Jerome Powell, left, talks with Board of Governors member Lisa Cook, right, during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

Overview

  • U.S. District Judge Jia M. Cobb is set to hear at 10 a.m. ET Lisa Cook’s request for a temporary restraining order that would keep her on the Federal Reserve Board while her lawsuit proceeds.
  • President Trump sent Cook a letter saying she was removed effective immediately, citing mortgage-related allegations, as the Justice Department reviews referrals and no criminal charges have been filed.
  • FHFA Director Bill Pulte announced a second criminal referral alleging issues with a third property in Cambridge, Massachusetts, expanding earlier claims tied to homes in Michigan and Georgia.
  • Cook’s suit argues the allegations predate her 2022 Senate confirmation and do not constitute legal cause for removal, and it seeks injunctive relief and due-process protections while denying wrongdoing.
  • The dispute will test the undefined ‘for cause’ standard that has never been litigated for Fed governors, with legal experts expecting a lengthy fight that could reach the Supreme Court and potentially affect the board’s balance if Cook is ousted.