WASHINGTON—A federal judge has issued a temporary restraining order halting President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook, NBC News reported.
The ruling allows Cook to remain on the central bank’s board and continue her duties while the case proceeds.
In granting the order, U.S. District Judge Jia Cobb said that "the Court will enter an injunction directing [Fed Chair Jerome] Powell and the Board of Governors to allow Cook to continue to operate as a member of the Board for the pendency of this litigation.”
"The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement," Cobb wrote, according to NBC News. "That independence is critical in helping the nation’s 'banking system to promote stability.'"
Lawyers for Cook argued in federal court in Washington that Trump’s attempt to fire her for “mortgage fraud” was illegal and lacked “cause,” which is the only reason a Fed governor can be removed, NBC News said.
The Trump Administration has alleged that Cook listed multiple properties as her primary residence when applying for mortgages, potentially to secure lower interest rates. She owns homes in Michigan, Georgia, and Massachusetts. As CUToday.info reported, those two loans were issued by credit unions—one from University of Michigan Credit Union and another from Bank Fund Credit Union.
The decision clears the way for Cook to take part in the Fed’s closely watched two-day meeting beginning Sept. 16, where policymakers are expected to weigh an interest rate cut.