Particle.news
Download on the App Store
9 ARTICLES
·
1h ago

Justice Department Appeals Order Blocking Trump's Removal of Fed Governor Lisa Cook

The case tests whether the Federal Reserve Act allows removing a governor for alleged conduct before taking office.

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)
FILE - Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)
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)
Norm Eisen, left, and Abbe Lowell attorneys of Lisa Cook, a governor on the Federal Reserve Board, leave the federal courthouse in Washington, Friday, Aug. 29, 2025. (AP Photo/Jose Luis Magana)

Overview

  • DOJ filed a notice of appeal on Wednesday challenging Judge Jia Cobb’s preliminary injunction that keeps Cook in her seat during the lawsuit.
  • Judge Cobb wrote that the public interest in Federal Reserve independence favors reinstatement and said Cook made a strong showing that the removal violated the statute.
  • The court read the law’s “for cause” provision as applying to misconduct while in office, an issue not previously litigated because no president has removed a Fed governor.
  • Cook denies mortgage‑fraud allegations raised by FHFA Director Bill Pulte, and her suit argues the claim does not authorize removal and was a pretext tied to her policy stance.
  • Separately, DOJ is conducting a mortgage‑fraud inquiry with grand jury subpoenas in Georgia and Michigan, and the Senate Banking Committee advanced Trump nominee Stephen Miran for a vacant Fed board seat.