A United States federal judge has blocked President Donald Trump’s effort to fire Federal Reserve Governor Lisa Cook, siding with Cook’s legal challenge that her removal violated the Constitution and federal law.
District Judge Jia Cobb, a Biden appointee, issued a preliminary ruling late Tuesday halting the attempted dismissal. She found Cook had a strong legal argument that her firing breached the Federal Reserve Act’s for cause provision and possibly her Fifth Amendment rights.
Trump cited an ongoing investigation into potential mortgage fraud as justification for firing Cook. However, Judge Cobb ruled that such grounds are only valid if related to actions taken during her tenure in office.
The ruling allows Cook to remain in her position while the case continues. The judge also noted that the case raises novel constitutional questions that warrant further legal review on a non-emergency basis.
