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US Judge Blocks Trump’s Attempt to Remove Fed Governor Lisa Cook

By: Ratan Datta

On: Wednesday, September 10, 2025 8:17 AM

US Judge Blocks Trump’s Attempt to Remove Fed Governor Lisa Cook
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A federal judge has temporarily halted former President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, marking an early legal setback for the White House in a dispute that could reshape the central bank’s independence.

U.S. District Judge Jia Cobb in Washington, D.C., issued the preliminary injunction on Tuesday, ruling that the administration’s claims of mortgage fraud against Cook were not strong enough to justify her dismissal. The decision allows Cook to remain in her post while legal proceedings continue.

Fed Governor to Remain in Key Role

The ruling ensures that Cook, appointed in 2022, will likely take part in next week’s pivotal interest rate-setting meeting. Analysts say her continued presence provides stability as the Fed weighs its response to slowing job growth following newly revised employment data.

Treasury Secretary Scott Bessent has urged the Federal Reserve to “recalibrate” its policies after a government agency reported weaker-than-expected hiring through March, adding further scrutiny to the central bank’s decisions.

US Judge Blocks Trumps Attempt to Remove Fed Governor Lisa Cook 1
Photo: Courtesy

Broader Implications for the Federal Reserve

Legal experts note that Trump’s attempt to remove a sitting Fed governor is unprecedented. The case could establish a critical precedent for the degree of independence the U.S. central bank can maintain from political influence.

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“The ruling underscores the judiciary’s role in preserving the Fed’s autonomy,” said one Washington-based legal analyst. “If political leaders were allowed to remove governors at will, it would undermine market confidence in U.S. monetary policy.”

Market and Political Reactions

Financial markets showed little immediate reaction to the decision, with S&P 500 and Nasdaq futures posting modest gains early Tuesday. However, economists warn that any sustained challenge to the Fed’s independence could inject uncertainty into global markets.

Meanwhile, political reactions have been sharply divided. Supporters of the ruling argue it defends institutional stability, while Trump allies insist the administration has the right to act on alleged misconduct by officials.

The legal battle is expected to intensify in the coming months, with further hearings scheduled later this year. For now, Cook’s position remains secure, ensuring continuity as the Federal Reserve faces crucial decisions on inflation, employment, and interest rates.

Disclaimer: This article is based on publicly available information and is intended for general news reporting. It does not constitute legal, financial, or investment advice.

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