A federal judge has ruled that Federal Reserve governor Lisa Cook can keep her job while she fights Donald Trump’s attempt to remove her over unproven mortgage fraud allegations.
Cook sued the president after he moved to oust her, part of a broader push by Trump to expand his control over the central bank. She asked U.S. District Judge Jia Cobb for a temporary restraining order, blocking Trump’s effort to “immediately” dismiss her while the case moves forward. The court granted her request.
Trump has repeatedly clashed with the Fed, frustrated by policymakers’ refusal to deliver the sharp interest rate cuts he wants. He has openly talked about reshaping the board to secure a majority, raising fears about the Fed’s independence from politics.
His attempt to fire Cook followed claims from Bill Pulte, a Trump ally now running the Federal Housing Finance Agency. Pulte accused Cook of listing two different properties as primary residences when applying for mortgages in 2021. On social media, he questioned whether someone facing such allegations should have a hand in setting the nation’s interest rates, and he referred the case to the Justice Department.
Cook refused to resign, prompting Trump to try to fire her directly. The Justice Department is now reviewing the mortgage claims.
Cook’s lawyers insist she “did not ever commit mortgage fraud.” They say federal agencies were already aware of the details when Joe Biden nominated her to the Fed’s board in 2022. According to filings, some confusion arose because Cook listed a Michigan home as her permanent residence, a Georgia home as a second property, and a Massachusetts home as both a residence and a rental.
For now, Cook stays on the board as the legal battle plays out, a test that could decide not just her future but also how far a president can go in reshaping the Federal Reserve.
