Judge Cobb Blocks Trump's Fed Governor Firing But Move Sets Stage For Supreme Court Showdown

(MENAFN- The Rio Times) Federal Judge Jia Cobb issued a temporary restraining order Tuesday night blocking President Donald Trump from firing Federal Reserve Governor Lisa Cook.

However, legal experts say the Biden-appointed judge's ruling merely delays Trump's ultimate objective of forcing a constitutional showdown over central bank accountability.

The preliminary injunction represents standard judicial procedure rather than meaningful victory for Fed autonomy advocates. Trump's legal team will immediately appeal to the D.C. Circuit Court.

Precedent there strongly favors expedited review for cases involving presidential removal authority. The Supreme Court's emergency docket provides a direct pathway for rapid resolution within weeks rather than months.

Cobb ruled that Cook's removal violated the Federal Reserve Act's "for cause" provision, determining that governors can only be dismissed for misconduct during their tenure, not alleged actions before appointment.



The judge emphasized Trump's failure to provide due process notification, calling his social media dismissal announcement constitutionally inadequate.

However, constitutional scholars recognize these procedural objections as temporary obstacles rather than substantive barriers to Trump's broader strategy.

The mortgage fraud allegations against Cook, originating from Trump appointee Bill Pulte, provide sufficient legal foundation for Supreme Court review regardless of their ultimate merit.

Trump's approach deliberately bypasses traditional political pressure tactics in favor of direct constitutional confrontation.

Rather than waiting for Fed Chair Jerome Powell's term to expire in May 2026, Trump chose immediate removal proceedings that force judicial interpretation of presidential authority over the nation's central banking system.

The timing reveals sophisticated legal planning. Cook's case arrives at the Supreme Court amid the justices' ongoing reconsideration of independent agency protections.

The May 2025 Wilcox ruling allowed Trump to remove National Labor Relations Board members while explicitly distinguishing the Federal Reserve as a "uniquely structured, quasi-private entity."

This Fed exception now faces direct challenge through Cook's removal. Trump's attorneys argue the Federal Reserve Act's ambiguous "for cause" language grants presidents broad discretion to define adequate dismissal grounds, potentially eliminating practical employment protections for Fed officials.

The Supreme Court's emergency procedures enable rapid resolution without traditional lower court deliberation. Justice Department attorneys confirmed they will seek expedited appellate review, anticipating Supreme Court intervention before the Fed's September 16-17 monetary policy meeting concludes.

Legal precedent strongly favors Trump's position on executive removal authority. The Court's conservative majority has consistently expanded presidential power over federal agencies, viewing independent board structures as constitutional anomalies rather than legitimate congressional prerogatives.

Cook's removal would immediately provide Trump a 4-3 Fed board majority supporting aggressive interest rate cuts from the current 4.25-4.5 percent range.

More strategically, February 2026 presents opportunities to influence all 12 regional Fed bank president appointments through Trump-aligned board members.

Judge Cobb's ruling addresses procedural concerns while avoiding substantive constitutional questions about presidential removal authority.

Her emphasis on due process violations and pre-appointment conduct limitations provides narrow grounds for appellate reversal rather than broad Fed independence protection.

The Justice Department's parallel criminal investigation into Cook's mortgage applications, involving grand jury subpoenas in Georgia and Michigan, continues regardless of civil court proceedings.

These criminal referrals strengthen Trump's "for cause" removal justification during Supreme Court review. Financial markets remain largely unaffected by Tuesday's ruling, recognizing its temporary nature.

Constitutional law experts anticipate Supreme Court resolution within 30-60 days through emergency procedures, establishing definitive precedent on presidential control over monetary policy.

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