A federal judge late Tuesday blocked President Donald Trump’s effort to fire Federal Reserve Governor Lisa Cook.
Judge Jia Cobb granted Cook’s request to stop the attempted firing.
Cobb, an appointee of former President Joe Biden, said on first look Cook’s claim that she was improperly fired is a valid one and that it violated her rights under the Fifth Amendment. At the same time, the judge, who sits on the federal bench in DC, said she believed the issue brings up new legal questions that need to be addressed over the long term.
“President Trump’s actions and Cook’s resulting legal challenge raise many serious questions of first impression that the Court believes will benefit from further briefing on a non-emergency timeline,” Cobb wrote. “However, at this preliminary stage, the Court finds that Cook has made a strong showing that her purported removal was done in violation of the Federal Reserve Act’s ‘for cause’ provision.”
Trump has attempted to fire Cook for cause, citing an investigation into her for possible mortgage fraud. But Cobb said Tuesday that the ability to fire people “for cause” is not absolute and limited to actions taken in office.
“The Court finds that permissible cause for removal of a Federal Reserve Governor extends only to concerns about the Board member’s ability to effectively and faithfully execute their statutory duties, in light of events that have occurred while they are in office,” the judge wrote.
This is a developing story and will be updated.
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