Trump can’t fire Federal Reserve Governor Lisa Cook, judge rules

U.S. District Judge Jia Cobb on Tuesday temporarily blocked the Federal Reserve Board of Governors from firing board member Lisa Cook. Trump on Aug. 25 shared a letter saying he fired Cook over potential false statements she made about mortgage agreements. She allegedly claimed two different properties as her primary residence. Cook refused to leave her position and sued to block her firing a few days later.

Cobb ruled that the Federal Reserve board must not withhold any benefits or resources from Cook, nor treat her as if she was fired, until litigation ends. Trump’s lawyers are expected to appeal the decision to the U.S. Court of Appeals.

What was Cobb’s reasoning for her Tuesday decision in Cook’s favor? Cobb wrote that the president was only allowed to fire board members over actions they took while in office. Cook’s firing didn’t meet those standards because she filled out the mortgage agreements before being appointed to the board, Cobb wrote. The judge also said that Trump didn’t give Cook sufficient notice of the allegations against her before firing her.

Dig deeper: Read Lauren Canterberry’s report on Cook’s refusal to leave her position.