Federal Judge Blocks President Trump's Attempt to Remove Fed Governor Lisa Cook

A federal judge has temporarily blocked President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook, marking a significant legal development concerning the independence of the U.S. central bank.

On September 9, 2025, U.S. District Judge Jia Cobb issued a preliminary injunction preventing President Trump from dismissing Cook over allegations of mortgage fraud related to property purchases in 2021, prior to her 2022 Senate confirmation. Cook has consistently denied these allegations.

Judge Cobb's ruling emphasized that the Federal Reserve Act permits the removal of governors only "for cause," a term traditionally interpreted to mean inefficiency, neglect of duty, or malfeasance during their tenure. The judge stated that alleged misconduct before Cook's appointment does not meet this standard. Additionally, the manner of Cook's dismissal—via a social media post by the President—was noted as a likely violation of her constitutional due process rights.

This decision allows Cook to continue her duties as a member of the Federal Reserve Board while the lawsuit proceeds. The case is unprecedented, as no previous president has attempted to remove a Fed governor, and it raises critical questions about the balance of power between the executive branch and the central bank.

Lisa Cook, the first Black woman to serve as a governor on the Federal Reserve Board, was appointed in 2022. Before her appointment, she was a professor of economics and international relations at Michigan State University, focusing on economic growth, innovation, and financial institutions.

The White House maintains that the President acted lawfully. Spokesman Kush Desai stated that the President "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."

The Justice Department has reportedly launched a criminal probe into the mortgage fraud allegations. However, Cook's legal team argues that the allegations are a pretext for her removal due to her policy positions.

This case represents the first legal test of a president's authority to remove a Federal Reserve governor, a role traditionally protected from political influence to maintain unbiased monetary policy. The ruling underscores concerns about the central bank's independence and the legal protections of its leaders.

As the lawsuit progresses, the outcome could have lasting implications for the autonomy of the Federal Reserve and the legal boundaries of presidential authority over independent agencies.