Federal Judge Bars Trump from Dismissing Fed Governor

(MENAFN) A US federal judge has issued a temporary injunction, blocking President Donald Trump's attempt to remove Federal Reserve Governor Lisa Cook. The decision, delivered Tuesday by US District Judge Jia M. Cobb, ruled that the termination was likely in violation of both federal law and constitutional protections.

Judge Cobb's preliminary injunction prevents Trump from ousting Cook over alleged mortgage fraud, determining that the dismissal lacked the necessary legal cause under the Federal Reserve Act. The court's ruling stated that Cook "made a strong showing that her purported removal was done in violation of the Federal Reserve Act's 'for cause' provision."

The court's analysis emphasized that legal precedent restricts removal to a Governor's performance while in office, stating that federal law limits removal grounds to "a Governor's behavior in office and whether they have been faithfully and effectively executing their statutory duties." The judge also underscored that "for cause" removal "does not contemplate removing an individual purely for conduct that occurred before they began in office."

Furthermore, the court found the dismissal "likely violated Cook's procedural rights under the Fifth Amendment's Due Process Clause" and that Cook had demonstrated "irreparable harm from her removal." The ruling ensures Cook will retain her position on the Federal Reserve Board of Governors as the legal proceedings continue.

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