Judge temporarily blocks Trump's bid to fire Federal Reserve Governor Lisa Cook

A federal judge has temporarily halted President Donald Trump's effort to remove Federal Reserve Governor Lisa Cook, who is challenging her ouster from the central bank. Judge Jia Cobb granted Cook's request for an order to remain on the Fed's board while her lawsuit is litigated, a decision that comes just a week before a key rate meeting.

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You are hereby provided notice that the President is considering removing you from your position.

Trump is pursuing the removal of Cook, the first Black woman to serve as a Fed governor, based on allegations of mortgage fraud. A White House letter dated August 5, signed by Deputy Chief of Staff Dan Scavino, informed Cook that the President was considering her dismissal. She has been given 21 days to respond to the charges, which she has consistently denied.

The President's administration has launched an unprecedented challenge to the Federal Reserve's independence. This includes a criminal probe against former chairman Jerome Powell and the attempt to fire Cook, marking the first such presidential effort in the central bank's 111-year history. The Supreme Court previously ruled in June that Trump lacked the authority to dismiss Fed governors without cause, emphasizing the importance of the institution's independence.

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This was never about mortgage documents signed years before I became a Federal Reserve governor.

The court's decision in June was based on the narrow ground that Trump failed to provide Cook with the statutory procedural protections. The underlying fraud allegations were not ruled upon. Trump expressed anger at the verdict, vowing to take "appropriate action immediately." The White House letter asserts that Cook's alleged conduct was "grossly negligent" and rendered her "unfit for the office." Cook maintains that the allegations are baseless and unrelated to her tenure as a Fed governor.

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at a minimum, this conduct was grossly negligent and demonstrates that you are unfit for the office.