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1h ago

Judge Weighs Block on Trump’s Removal of Fed Governor Lisa Cook

The case tests the Fed’s for‑cause removal limit with potential implications for central bank independence.

Lisa Cook testifies before a Senate Banking Committee hearing on her nomination to be a member of the Federal Reserve Board of Governors (for a second term), on Capitol Hill in Washington on June 21, 2023.
Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the Board of Governors at the Federal Reserve in Washington, DC, on June 25, 2025.
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)
Lisa Cook at her 2023 Senate confirmation hearing. A Trump administration official has announced a new criminal referral regarding a property she received a mortgage for in Massachusetts, part of the administration's effort to remove her from the Fed's Board of Governors.

Overview

  • U.S. District Judge Jia Cobb held an expedited hearing at 10 a.m. EDT on Lisa Cook’s request for a temporary restraining order to keep her on the Federal Reserve Board.
  • Cook sued to stop President Trump’s attempt to remove her, denying mortgage‑fraud allegations and arguing they are a pretext that does not meet the Federal Reserve Act’s for‑cause standard or basic due process.
  • The Justice Department urged courts to be highly deferential to the president, asserting that perceived financial misconduct by a senior regulator is disqualifying and noting Cook has not offered an explanation in filings.
  • FHFA Director Bill Pulte announced a second criminal referral alleging issues with a third property in Cambridge, Massachusetts, after earlier claims involving homes in Ann Arbor and Atlanta; no criminal charges have been filed.
  • No president has previously removed a Fed governor, and Cook’s ouster could let Trump secure a 4–3 majority on the seven‑member board as the dispute races toward likely appellate review and potential Supreme Court consideration.