A federal judge on Tuesday granted a temporary restraining order blocking President Donald Trump’s firing of Federal Reserve governor Lisa Cook[1] for now.
The ruling means Cook will remain on the board[2] of the central bank until her case is heard at length. She is allowed to continue carrying out her work during that time.
In granting the order, the judge said “the Court will enter an injunction directing [Fed Chair Jerome] Powell and the Board of Governors to allow Cook to continue to operate as a member of the Board for the pendency of this litigation.”
Lawyers for Cook argued in federal court in Washington, D.C., that Trump’s attempt to fire her for “mortgage fraud” was illegal and lacked “cause,” which is the only reason that a Fed governor can be removed. “Cause” is commonly understood to be some kind of wrongdoing.
The judge will hear the merits of the case in more detail at a future hearing.
Trump moved to fire Cook[3] in late August, citing allegations of mortgage fraud brought by one of the president’s political appointees. Cook hasn’t been charged with any crime.
The Federal Reserve declined to comment on the judge’s order but previously said in a statement that it would “abide by any court decision.” Cook’s legal team did not immediately respond to a request for comment on the order.
Cook is the first Black woman to serve as a governor on the board of the Fed in its more than 110-year history. Before joining the Fed, she was a professor of economics and international relations at Michigan State University.
This is a developing story. Please check back for updates.
References
- ^ Federal Reserve governor Lisa Cook (www.nbcnews.com)
- ^ Cook will remain on the board (www.nbcnews.com)
- ^ Trump moved to fire Cook (www.nbcnews.com)
- ^ Steve Kopack (www.nbcnews.com)