A federal judge has blocked President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, a Biden appointee. Judge Jia Cobb, appointed by former President Biden, ruled that Cook’s firing likely violated the Federal Reserve Act and her Fifth Amendment rights.
Trump argued Cook could be removed “for cause,” citing mortgage fraud allegations. But the judge said such authority applies only to misconduct in office, not allegations unrelated to current duties.
Cobb also warned that the administration’s interpretation would effectively let presidents remove governors at will, undermining the Fed’s independence.
President Trump's allies have pressed to charge the Fed Governor Lisa Cook and two other prominent political foes with a crime that the federal government rarely prosecutes, a Reuters review of eight years of court records shows https://t.co/1RfDzxpoHg pic.twitter.com/1MwmFZ8lk3
— Reuters (@Reuters) September 10, 2025
The ruling is a setback for Trump, who has pressed the central bank to cut rates more quickly to support growth amid his trade and tariff policies. The administration is expected to appeal.
Meanwhile, Trump has signaled his aim to gain a majority on the Fed’s board, potentially reshaping U.S. monetary policy in the months ahead.
LATEST: A federal judge has blocked President Trump’s attempt to fire Federal Reserve Governor Lisa Cook.
— ABC News (@ABC) September 10, 2025
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