Judge Delays Ruling on Trump Effort to Fire Fed Governor Cook

Federal Reserve Board Governor Lisa Cook is challenging President Donald Trump's attempt to remove her based on unproven allegations of mortgage fraud. Cook filed a lawsuit arguing Trump lacks legal cause to fire her, as the Federal Reserve Act only allows removal "for cause," a term that remains legally undefined and untested in court. A federal judge has declined to immediately block the firing, instead setting an expedited briefing schedule for further arguments, with a ruling expected soon. Cook's attorney contends the allegations are politically motivated and insufficient for removal, while the Justice Department asserts the president has broad discretion to determine cause. The case highlights tensions over the Federal Reserve's independence, as Cook and Fed Chair Jerome Powell have resisted Trump's push to cut interest rates, and a removal would shift the board's balance toward the president's preferences. The dispute may ultimately reach the Supreme Court, potentially setting a precedent for the limits of presidential authority over the Federal Reserve.