A federal judge didn’t issue a ruling on Friday (August 28) in Federal Reserve Governor Lisa Cook’s request to block President Donald Trump from firing her, per CNBC.
During Friday’s court hearing, Cook’s attorney, Abbe Lowell, argued that Trump lacks legal cause to remove Cook from her Senate-confirmed post. Lowell rejected Trump’s justification for the firing, which stem from mortgage fraud allegations promoted on social media by Federal Housing Finance Agency Director Bill Pulte.
“You can’t have Director Pulte’s crazy midnight tweets be the cause,” Lowell told Judge Jia Cobb, calling the claims an “obvious smear campaign.”
“Nothing in these vague, unsubstantiated allegations has any relevance to Gov. Cook’s role at the Federal Reserve,” he added.
Cook, the first Black woman on the Fed Board, was nominated by former President Joe Biden in 2022 to a 14-year term ending in 2038. A Department of Justice attorney argued Friday that Trump has broad discretion to determine what constitutes legal cause for firing a Fed governor.
Cobb declined to immediately rule on Cook’s request for a temporary restraining order blocking Trump’s termination. The judge asked both parties to file supplemental arguments in writing and consider whether they prefer a ruling on the temporary order first or a decision on a potential preliminary injunction or summary judgment.
If Trump succeeds in removing Cook, he would shift the balance of power on the seven-member Fed Board, potentially securing a majority to advance his push for interest rate cuts. A final resolution may ultimately come from the U.S. Supreme Court.
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