US Judge Grants Preliminary Injunction, Restoring Fed Governor Lisa Cook’s Duties Amid Trump Firing Dispute
On September 9, 2025, U.S. District Judge Jia M. Cobb in Washington, D.C., issued a preliminary injunction blocking President Donald Trump’s attempt to fire Federal Reserve Governor Lisa D. Cook, restoring her access to her office and duties as a member of the Fed’s Board of Governors pending the outcome of her lawsuit. The ruling, which came late Tuesday evening, emphasizes the Federal Reserve’s independence from political interference and finds that Trump’s cited reasons for the removal likely violate federal law.
Background: Trump’s Attempted Firing and Cook’s Lawsuit
Lisa Cook, 52, an economist and the first Black woman to serve on the Fed’s Board of Governors, was nominated by President Joe Biden and confirmed by the Senate in May 2022. On August 25, 2025—shortly after Trump’s inauguration for a second term—Trump announced her immediate firing, citing “for cause” under the Federal Reserve Act based on allegations of mortgage fraud from 2021, before her appointment. The claims, raised by Trump appointee William Pulte, director of the Federal Housing Finance Agency, alleged Cook misrepresented properties as her primary residence on mortgage applications to secure lower rates and tax credits.
Cook, represented by attorney Abbe Lowell, filed a lawsuit on August 28, 2025, against Trump, Fed Chair Jerome Powell, and the Board of Governors, arguing the removal was “unprecedented and illegal,” violated the Federal Reserve Act’s “for cause” provision, and infringed on her Fifth Amendment due process rights by providing no notice or hearing. She sought a temporary restraining order (TRO) to halt the firing and reinstate her immediately, describing the allegations as “unsubstantiated and vague.”
The White House defended the action, stating it addressed “credibly accused” misconduct to enhance the Fed’s “accountability and credibility.” However, Cook’s suit highlighted that the Fed Act limits removals to issues of “inefficiency, neglect of duty, or malfeasance in office,” not pre-appointment conduct.
Key Elements of Judge Cobb’s Ruling
In a 49-page opinion, Judge Cobb—a Biden appointee—granted Cook’s request for a preliminary injunction, converting an initial TRO into a longer-term block on the firing. She ordered the Fed to “allow Cook to continue to operate as a member of the Board” during litigation, restoring her office access and voting rights.
Cobb’s analysis focused on four factors for preliminary relief:
- Likelihood of Success on the Merits: Cook showed a “strong” case that the removal violated the Fed Act’s “for cause” clause, which Cobb interpreted as limited to “behavior in office” and faithful execution of duties—not prior actions like the 2021 mortgage issues. She noted Trump identified no post-appointment misconduct harming the Board or public interest.
- Irreparable Harm: Barring Cook from duties constitutes irreparable injury, remediable only by reinstatement.
- Balance of Equities: Favors Cook, as the government faces no comparable harm from her continued service.
- Public Interest: Strongly supports Fed independence, designed to resist “policy pressure” or presidential agendas. Cobb rejected Trump’s request to delay the ruling for appeal, citing urgency ahead of the Fed’s September 16-17 meeting.
The judge acknowledged novel legal questions, including potential Supreme Court review, but prioritized emergency relief.
Reactions and Next Steps
Cook’s attorney hailed the decision as reaffirming “the importance of safeguarding the independence of the Federal Reserve from illegal political interference,” vowing she would “continue to carry out her sworn duties.” The ruling allows Cook to participate in the upcoming Fed meeting, where interest rate cuts are anticipated.
The Trump administration immediately appealed to the U.S. Court of Appeals for the D.C. Circuit, with experts predicting escalation to the Supreme Court, which recently limited presidential removal powers over independent agencies. This case tests the boundaries of executive authority over the Fed, amid Trump’s broader push for influence over monetary policy, including demands for rate cuts to align with his economic agenda.
The injunction provides temporary stability to the Fed Board but underscores ongoing tensions between the executive branch and the central bank’s autonomy, with potential ripple effects on financial markets and policy decisions.