A Federal Judge Has Ruled That President Trump Can’t Fire Federal Reserve Governor Lisa Cook, Yet!

A federal court has ruled that President Trump can’t fire embattled Federal Reserve Governor Lisa Cook. As a result, Cook can remain in her position while she fights President Donald Trump’s efforts to fire her.

The Trump Administration is almost certain to appeal the ruling. However, this ruling is a blow to the Trump administration’s efforts to assert more control over the independent Federal Reserve. The Federal Reserve sets short-term interest rates to achieve its congressionally mandated goals of stable prices and maximum employment. Congress has also sought to insulate the Federal Reserve from day-to-day politics.

U.S. District Judge Jia Cobb late Tuesday granted Cook’s request for a preliminary injunction. The injunction blocks Trump from firing firing while the dispute winds its way through the courts. Cobb ruled that Cook would likely prevail in the lawsuit she filed late last month to overturn her firing.

Trump claimed he was firing Cook several weeks ago over FHFA Director Bill Pulte’s accusation she committed mortgage fraud. 

The White House insisted Trump Can Fire Cook

White House spokesperson Kush Desai said in a press notice:

“President Trump lawfully removed Lisa Cook for cause due to credible allegations of mortgage fraud from her highly sensitive position overseeing financial institutions on the Federal Reserve Board of Governors. This ruling will not be the last say on the matter, and the Trump Administration will continue to work to restore accountability and confidence in the Fed.”

However, Cobb ruled that the allegations likely weren’t sufficient legal cause to fire Cook. The court ruled Trump could only fire Cook for actions taken during a governor’s time in office. Cobb wrote in her ruling: