Jia Cobb, a federal judge in Washington, D.C., on 9/9/2025 granted Federal Reserve Governor Lisa Cook's request to remain on the Fed's Board of Governors while her lawsuit against President Donald Trump proceeds.
Cook is one of seven members of the Fed's Board of Governors. These governors are appointed by the US president and confirmed by the Senate, each serving a 14-year term with no possibility of reappointment. The Federal Reserve Act of 1913, which established the Fed, stipulates that a president can dismiss a governor for "cause."
"The most accurate understanding of the 'cause' provision is that the basis for removing a Board member is limited to reasons related to their conduct during their term and whether they have performed their statutory duties faithfully and efficiently. Therefore, it cannot be used as a basis for removing an individual solely for actions that occurred before they took office," Judge Cobb's ruling stated.
Neither the White House nor Trump has commented on the ruling.
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Fed Governor Lisa Cook at Fed headquarters in Washington, D.C. on 25/6. Photo: AFP |
Fed Governor Lisa Cook at Fed headquarters in Washington, D.C. on 25/6. Photo: AFP
President Trump announced Cook's dismissal on 25/8, effective immediately. He cited the reason for his decision as a referral for prosecution against Cook on allegations of "mortgage fraud" sent to the Department of Justice by Federal Housing Finance Agency (FHFA) Director Bill Pulte.
Pulte alleged that Cook listed her primary residence as an apartment in Atlanta, Georgia, despite having previously taken out a mortgage on a home in Michigan and identifying it as her primary residence. This occurred in 2021, a year before Cook was confirmed by the Senate as a Fed governor.
Cook, the first Black woman to become a Fed governor, filed a lawsuit against President Trump on 28/8 in federal court in Washington, D.C., seeking a ruling confirming her status as a Fed governor and allowing her to continue her duties.
In her lawsuit, Cook argued that an unsubstantiated allegation related to actions that occurred before she took office does not constitute "cause" for dismissal, and warned of the implications if the court ruled in Trump's favor.
The Fed stated that Governor Cook remained in office after Trump announced her dismissal.
Tensions between President Trump and the Fed have increased as he has sought interest rate cuts to stimulate the economy, but the Fed has not complied. He has repeatedly attacked and even threatened to fire Fed Chair Jerome Powell.
Cook is one of three governors appointed under former President Joe Biden. Two of the remaining governors were chosen by Trump. If Cook resigns or is dismissed, Trump could appoint a replacement, ensuring a majority of the Fed's Board of Governors shares his views on monetary policy.
Huyen Le (AFP, Reuters)
