Overview

• Judge Jia Cobb granted a preliminary injunction ordering the Federal Reserve and Chair Jerome Powell to treat Lisa Cook as a sitting governor while the case proceeds.
• The ruling allows Cook to take part in the Sept. 16–17 policy meeting, where a rate cut is widely expected.
• Cobb found Cook is likely to succeed on claims that the Federal Reserve Act’s 'for cause' removal standard applies to in-office conduct and that her due-process rights were violated.
• The White House maintains the firing was lawful based on mortgage-fraud allegations and signaled it will appeal, setting up potential higher-court review.
• DOJ has opened a criminal mortgage-fraud investigation with grand jury subpoenas in Georgia and Michigan, though no charges have been filed, underscoring the case’s stakes for Fed independence and governance.