Judge Blocks Trump Firing of Fed Governor Lisa Cook

A federal judge ruled that Federal Reserve Governor Lisa Cook can remain in her position while she challenges President Donald Trump's attempt to fire her over allegations of mortgage fraud, a move that underscores the legal protections for Fed independence. The judge issued a preliminary injunction to maintain the status quo during the ongoing litigation, allowing Cook to participate in the upcoming Fed policy meeting. Cook's lawyers argue that Trump’s attempt to dismiss her was unlawful, as Fed governors can only be removed "for cause," and she was not given a hearing to respond to the allegations. The case highlights concerns about the Trump administration's efforts to exert political influence over the traditionally independent Federal Reserve, which economists warn could undermine monetary policy credibility. The Justice Department is investigating the mortgage fraud claims, but Cook denies any wrongdoing and notes that federal agencies were aware of her mortgage details during her nomination. The ruling is expected to be appealed by the administration, indicating the dispute is far from over.