Federal Reserve Governor Lisa Cook can remain in her position after a bombshell ruling by a federal judge that followed President Donald Trump’s recent attempt to fire her.
On Tuesday, U.S. District Judge Jia Cobb, a Biden appointee based in Washington, D.C., said that she will be moving Cook’s request into a preliminary injunction, which allows Cook to stay in her role, but will last through the entire case until a decision is made, pending any appeal from the government.
The judge said Cook has shown “irreparable harm” in her time away from the Federal Reserve as she is one of the leaders in controlling monetary policy, adding that “she has lost the ability to fulfill a high-ranking, public-servant role to which she is entitled.”
Fox Business reports:
The decision, which follows the Justice Department’s criminal investigation into Cook over allegations of mortgage application fraud, is the latest revelation in a high-stakes lawsuit likely headed to the Supreme Court. The probe could further complicate Cook’s fight to stay in her role on the Fed board, the panel of central bankers tasked with guiding the nation’s monetary policy.
After a hearing that lasted more than two hours on Aug. 29, Cobb indicated she would move quickly on the case — specifically on whether Trump acted unlawfully in seeking to fire Cook over mortgage fraud allegations.
Still, she also acknowledged the inherent complexities of the case and the novel requests that both Cook’s lawyers and lawyers for the Justice Department were grappling with for the first time in court.
Last week, Cobb granted a request from Cook’s attorneys seeking additional time to file their formal motion for a temporary restraining order (TRO).
The TRO is a short-term, emergency court order designed to maintain the status quo until a full hearing can be held. In plain terms, Cook asked the court to pause the firing and keep her in office until a full legal hearing can determine whether Trump’s removal was lawful.
The legal battle kicked off last month when Trump announced in a Truth Social post that he was firing Cook amid claims by his Federal Housing Finance Agency chief, Bill Pulte, that she had committed mortgage fraud.
Trump ousted Cook on Aug. 25, which prompted her to sue him in federal court three days later. Her lawsuit names as defendants Trump, the Board of Governors of the Federal Reserve System, and Federal Reserve Chairman Jerome Powell.
Pulte claimed that Cook used an Atlanta condo as her primary home, two weeks after taking a loan on a Michigan home she also declared as her primary residence.
“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” Trump wrote in a letter that accompanied the post.
Cook’s lawsuit argues that Trump’s move to fire her is unlawful and undermines the Federal Reserve’s independence. The suit, which was filed in federal court on Aug. 28, does not address the allegations that Cook listed multiple houses as a primary residence on mortgage filings.
Under the law, Cook has not been charged with any crimes.
This clown Cook needs to be removed from her “entitled” job position.