A federal judge handed President Donald Trump a stinging defeat Tuesday, temporarily blocking his effort to fire Federal Reserve Governor Lisa Cook—the latest high-profile target in Trump’s campaign to oust officials he sees as disloyal.
The ruling from U.S. District Judge Jia Cobb grants Cook a temporary restraining order, letting her keep her seat and continue voting while her case plays out. Cobb, a Biden appointee, was blunt in her reasoning: Trump failed to prove that Cook didn’t do her job.
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement. That independence is critical in helping the nation’s ‘banking system to promote stability,’” Cobb wrote. “President Trump has not identified anything related to Cook’s conduct or job performance as a Board member that would indicate that she is harming the Board or the public interest by executing her duties unfaithfully or ineffectively.”
Cook, who made history as the first woman of color to sit on the Fed board, became the latest in a string of prominent Black officials targeted by Trump since his return to the White House—a list that includes former Librarian of Congress Carla Hayden, who was forced out this spring, and New York Attorney General Letitia James.
Former Librarian of Congress Carla Hayden
Trump tried to remove Cook “for cause,” citing allegations that she made false statements on mortgage documents in 2021—a year before she joined the Fed. Cook has not been charged with a crime, and her lawyers called the allegations politically motivated, saying that Trump is looking to appoint loyalists who will slash interest rates at his direction.
What’s more, it’s not even clear that the alleged mortgage issues are the real reason she’s being targeted. As Trump points to supposed fraud, at least three of his Cabinet members hold multiple primary-residence mortgages themselves.
Since reclaiming the White House, Trump has moved to fill his administration with yes-men, often targeting Democratic-appointed officials or those whose views clash with his own. Hayden, who was appointed Librarian of Congress by President Barack Obama in 2016, was smeared by right-wing critics as “radical” and “woke” before her firing.
In Cook’s case, she’ll remain in her role—at least for now. Cobb ruled that the “for cause” provision only covers misconduct while in office, not personal matters from before an appointment.
“The best reading of the ‘for cause’ provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a governor’s behavior in office and whether they have been faithfully and effectively executing their statutory duties. ‘For cause’ thus does not contemplate removing an individual purely for conduct that occurred before they began in office,” Cobb wrote.
She also rejected the Justice Department’s argument that the court should defer entirely to the president’s judgment of what counts as cause.
“The court disagrees,” Cobb added.
Cook’s attorneys, Abbe Lowell and Norm Eisen, praised the decision as an important check on political meddling at the central bank, warning that removing Cook “on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law.”
The White House maintained that Trump acted within his authority and filed an appeal of the judge’s order on Wednesday.
“This ruling will not be the last say on the matter,” a White House spokesperson told The New York Times, adding that Trump “will continue to work to restore accountability and confidence in the Fed.”
Federal Reserve Chair Jerome Powell
The stakes are enormous. According to CNN, Cook’s removal would have left only two Biden appointees on the seven-member board, giving Trump near-total control over the direction of U.S. monetary policy right before another critical decision on interest rates.
The Fed’s key interest rate has sat between 4.25% and 4.5% since December, and Trump has been pushing hard for a dramatic three-point cut, saying that it would jumpstart the economy. The Fed, led by Chair Jerome Powell, has resisted those calls, warning that they need to see how Trump’s tariffs and other policies play out before making any big moves.
For now, Cook’s presence means that Trump will have to wait to get the Fed majority he’s seeking. She’ll also have a vote when the central bank meets next week, when it’s expected to restart rate cuts with a modest quarter-point reduction.
But Tuesday’s ruling is just the opening round in what’s shaping up to be a long legal fight over whether Trump can purge independent regulators who refuse to do his bidding.
And for critics, the pattern is becoming unmistakable: Trump is using the power of the presidency to go after opponents—often Black leaders—and remake independent institutions in his image.
