Updated September 10, 2025 at 2:09 PM EDT
A recent court decision in Washington D.C. has put a halt to President Trump’s attempt to remove Federal Reserve Governor Lisa Cook from her position. Late Tuesday night, a federal judge temporarily blocked this move, marking a significant pause in Trump’s efforts to exert more influence over the Federal Reserve.
The Justice Department has announced its intention to appeal the decision. This development follows Federal District Judge Jia Cobb’s issuance of a preliminary injunction, which suggests that Trump’s attempt to dismiss Cook might breach the Federal Reserve Act. This act is designed to protect the central bank from political interference, stipulating that Fed governors can only be removed “for cause,” which Judge Cobb interprets as misconduct while in office.
President Trump had based his actions on allegations that Cook falsified information on a mortgage application in 2021, prior to her appointment to the Fed board. However, these allegations remain unproven.
Judge Cobb also indicated that Trump’s actions likely violated Cook’s right to due process and that her removal could cause “irreparable harm” to her position as a Fed governor.
“This ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference,” stated Cook’s attorney Abbe Lowell. “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.”
In a social media post last month, Trump expressed his intent to remove Cook, continuing his broader campaign to pressure the Federal Reserve into reducing interest rates more swiftly.
Despite the ongoing legal proceedings, Cook remains active in her role at the Fed.
Concerns about Fed independence
President Trump’s recent actions have sparked debates about the Federal Reserve’s independence. Historically, the Fed has operated independently, setting interest rates without political interference to ensure stable economic conditions both domestically and globally.
Trump’s current strategy includes reshaping the Fed’s seven-member governing board. This became a timely opportunity after Adriana Kugler’s surprise resignation in August, which left a vacancy Trump is eager to fill. He has nominated Stephen Miran, a current White House economic adviser, to fill the position temporarily. Following his Senate confirmation hearing last week, Miran is now awaiting a full Senate vote. A Senate committee has already given him a favorable recommendation along party lines.
Trump’s attempt to remove Cook was aimed at creating an additional vacancy, potentially allowing him to appoint a majority of the Fed board. Two governors, appointed by Trump during his first term, have already shown a preference for rate cuts, dissenting from their colleagues in the July Fed meeting.
The Federal Reserve’s next meeting on interest rates is scheduled for the coming week, with expectations of a quarter percentage point reduction in response to a weakening job market.
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