Can a president fire a Federal Reserve governor at will? A US judge just drew a line in the sand.
In a stunning rebuke to the White House, Judge Jia Cobb has temporarily blocked President Donald Trump’s attempt to oust Lisa Cook.
Lisa Cook is one of the central bank’s key policymakers.
The case is unprecedented. No president has ever tried to sack a Fed governor before.
The law says they can be removed only “for cause,” but doesn’t spell out what that means.
Judge Cobb wrote that the phrase applies strictly to behaviour in office — not to alleged actions before taking the job.
“President Trump has not identified anything… indicating she is harming the board or the public interest,” Cobb said.
Cook Fights Trump In court
Cook, a Senate-confirmed governor who helps set US interest rates, sued the president, calling the move a direct assault on the Fed’s independence.
Her lawyer hailed the ruling as reaffirming the firewall between politics and monetary policy.
The White House insists it’s not backing down, claiming Cook misrepresented properties on mortgage applications.
Trump has long pressured the Fed to cut interest rates faster.
A flashpoint that could soon be tested as the central bank considers its first cut since 2024.
With the fight likely headed to the Supreme Court, the Fed’s autonomy is suddenly on trial.
