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Judge Blocks Trump From Removing Fed Governor Lisa Cook

Sep 10, 2025, 1:40 a.m. ET

AsianFin -- A U.S. judge has temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, granting her a reprieve as she challenges the president’s effort to oust her over allegations of mortgage fraud.

US District Judge Jia Cobb in Washington sided with Cook in an early legal victory, allowing her to continue serving on the Fed board. The ruling ensures she can likely participate in the Fed’s highly anticipated policy meeting on September 16-17, where she will vote on potential interest rate cuts.

The Justice Department is expected to appeal the decision quickly, and the case could eventually reach the US Supreme Court, which may have the final authority.

In her ruling, Judge Cobb determined that the alleged mortgage misconduct did not meet the “for cause” standard required to remove a Federal Reserve Governor under the Federal Reserve Act. She also concluded that the process by which Cook was dismissed likely violated her constitutional due process rights.

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