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2d ago

Justice Department Seeks Emergency Stay to Remove Fed Governor Lisa Cook Before Rate Meeting

Prosecutors ask the D.C. Circuit to lift a judge’s injunction by Monday to clear the way for Cook’s ouster ahead of next week’s policy vote.

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)
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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)

Overview

  • U.S. District Judge Jia Cobb granted a preliminary injunction keeping Cook on the Federal Reserve Board, finding the Federal Reserve Act’s “for cause” removal likely covers only misconduct in office.
  • The Justice Department filed an appeal and an emergency motion seeking to pause Cobb’s order, requesting a ruling by Monday before the Sept. 16–17 FOMC meeting.
  • Government filings argue the mortgage allegations raise questions about Cook’s trustworthiness, while her lawyers call the claims unsubstantiated and say she was denied due process.
  • A separate criminal mortgage-fraud probe is active with grand jury subpoenas in Georgia and Michigan, and no charges have been filed.
  • The dispute is unprecedented for a Fed governor and could alter the board’s makeup, testing presidential removal power and the central bank’s independence with a potential path to the Supreme Court.