Federal judge temporarily blocks Trump from firing Federal Reserve Gov Lisa Cook

A federal judge late Tuesday night blocked the Trump administration from firing Federal Reserve Governor Lisa Cook over allegations she committed mortgage fraud while she appeals the dismissal.

President Donald Trump attempted to dismiss Cook last month over an allegation from Federal Housing Finance Agency Director Bill Pulte that she had obtained a mortgage on a second home she incorrectly described as her primary residence. 

Cook has denied the mortgage fraud allegation and challenged the firing late last month.

U.S. District Judge Jia Cobb granted Cook’s request for a preliminary injunction and ruled Cook made a good case at the current stage that the firing violated the Federal Reserve Act’s “for cause” provision.

Cobb wrote that the provision is best interpreted to cover actions conducted while on the board, and that Cook cannot be removed for alleged crimes or actions committed before she took office.

“’For cause’ thus does not contemplate removing an individual purely for conduct that occurred before they began in office,” Cobb wrote in her 49-page ruling. “In addition, the Court finds that the removal also likely violated Cook’s procedural rights under the Fifth Amendment’s Due Process Clause. She has also demonstrated irreparable harm from her removal.”

Cook’s alleged crime occurred in 2021 and the Senate confirmed her nomination in 2022.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.