Court blocks firing of Fed governor Lisa Cook

A federal court ruled Tuesday that Federal Reserve Governor Lisa Cook can keep her seat while she challenges President Donald Trump’s attempt to fire her.

District Judge Jia Cobb issued a preliminary injunction, finding that Cook is likely to succeed in her lawsuit. 

Cobb said the allegations of mortgage fraud, involving two properties Cook purchased before joining the Fed, did not meet the legal threshold for removal.

The ruling blocks Trump’s effort to exert more control over the independent central bank, which Congress shielded from direct political influence.

Cook will now participate in the Fed’s September 16-17 meeting, where policymakers are expected to cut rates.

The case marks the first presidential attempt to remove a Fed governor.