A federal judge has halted President Donald Trump’s attempt to dismiss Federal Reserve governor Lisa Cook, delivering a significant victory for the central bank in a historic dispute over its independence.
Trump declared last month that he had removed Cook from the board, but the Fed maintained she remained a sitting governor, with authority over US monetary policy decisions.
In her ruling, Judge Jia Cobb said the president failed to show legal grounds for Cook’s removal.
“President Trump has not identified anything related to Cook’s conduct or job performance as a board member that would indicate that she is harming the board or the public interest by executing her duties unfaithfully or ineffectively,” she wrote.
The White House pushed back, vowing to continue its effort: “This ruling will not be the last say on the matter, and the Trump administration will continue to work to restore accountability and confidence in the Fed.”
Cook’s lawyer, Abbe David Lowell, welcomed the decision, saying it reinforced the central bank’s independence. “Governor Cook will continue to carry out her sworn duties as a Senate-confirmed board governor.”
The clash, the first of its kind in US history, could reshape the limits of presidential authority over the Fed. Analysts warn the case may set a precedent with far-reaching implications for central bank autonomy as it prepares to announce its first interest rate cut since September 2024.
