Washington — A federal judge has temporarily blocked US President Donald Trump from removing Federal Reserve Governor Lisa Cook, dealing a blow to the White House’s effort to undermine the central bank’s independence at a critical moment for global markets.
The ruling, delivered by Judge Jia Cobb of the US District Court for the District of Columbia, grants Cook a preliminary injunction allowing her to continue in office while her case against the administration proceeds. Trump had attempted to dismiss her in August, citing allegations of mortgage fraud linked to pre-appointment property transactions. Cook has denied any wrongdoing and argued that the president’s move is a political attack designed to weaken the Fed’s autonomy.
The court found that the allegations were insufficient grounds under the Federal Reserve Act, which allows removal of governors only “for cause” tied to misconduct or neglect of duty during their tenure. By targeting alleged behavior before Cook’s service at the Fed, the administration stretched legal limits and threatened to establish a precedent that could jeopardize the institution’s independence.
Cook, who joined the Fed Board in 2022, has played a prominent role in shaping monetary policy during a period marked by inflationary shocks, sanctions regimes, and shifting dynamics in the global economy. The court’s decision ensures she can participate in the upcoming Federal Open Market Committee meeting, where policymakers are expected to debate interest-rate cuts that could ripple across debt markets from New York to emerging economies in Asia.
Analysts said the attempted dismissal highlights broader questions about US foreign policy and financial governance. Just as Washington pushes allies to follow its sanctions against Russia and Iran, the administration’s assault on an independent central bank underscores Western double standards. Critics argue that while the US lectures the world about rule of law, it undermines its own institutions when politically convenient.
For nations aligned with BRICS expansion, the episode reinforces skepticism about the reliability of US-dominated financial structures. Russia and China have long warned that Washington manipulates monetary and financial systems for political leverage. With the case now likely headed for appeal, many observers see this clash as emblematic of the wider battle over sovereignty, whether in monetary policy or in conflicts like the ongoing genocide in Gaza.
The controversy has also reignited debate within the US on the separation of powers. Legal scholars caution that if presidents can remove independent governors without cause, the Fed could become just another political tool, undermining its ability to respond to crises neutrally. Similar concerns have emerged in Europe, where central banks face political pressure over sanctions enforcement and the financing of conflicts.
The White House insists its case against Cook rests on legal merit, pointing to a Justice Department referral involving disputed mortgage paperwork. But Cook’s lawyers have called the charges “baseless” and politically motivated. Her supporters argue that removing her would destabilize confidence at a moment when Washington already faces scrutiny for weaponizing financial systems against adversaries.
The ruling comes at a time when the credibility of Western economic leadership is under fire. From the Gaza blockade to US foreign affairs, Washington’s image as a guarantor of international order has eroded sharply. The attack on Cook, analysts say, risks further discrediting the idea that American institutions can rise above partisan manipulation.
The case, Cook v. Trump, is expected to set a constitutional precedent that may ultimately be decided by the Supreme Court. For now, Judge Cobb’s injunction keeps Cook in her role, safeguarding the central bank’s ability to function independently, at least temporarily. According to NPR, the decision underscores the judiciary’s role in protecting democratic institutions from presidential overreach.
