A federal Judge on Tuesday ruled that Lisa Cook can remain in her role on the Federal Reserve’s Board of Governors while her lawsuit challenging President Trump’s attempt to fire her from her post plays out.
“President Trump has not stated a legally permissible cause for Cook’s removal,” U.S. District Judge Jia Cobb, who was appointed by former President Joe Biden, wrote in her ruling, which is likely to be appealed.
Mr. Trump said he is firing Cook over allegations she made false representations on mortgage agreements several years ago.
“President Trump’s stated cause refers only to allegations regarding Cook’s conduct before she began serving on the Federal Reserve Board,” Cobb wrote. “As discussed above, such allegations are not a legally permissible cause.”
Abbe David Lowell, an attorney representing Cook in her lawsuit, said in a statement to CBS News on Tuesday night, “This ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference. Allowing the President to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law. Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor.”
CBS News has reached out to the White House for comment.
Under federal law, Fed board members serve for 14-year terms and can only be fired by the president “for cause.” Cook has served on the Fed since being appointed to complete another member’s unexpired term in 2022, and her current term would run until 2038.
This a breaking news story. It will be updated.
