Trump Vs Fed: US Judge Blocks Termination Of Governor Lisa Cook Ahead Of FOMC Meeting

A judge temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, allowing her to remain on the job as she challenges the president’s efforts to oust her over allegations she committed mortgage fraud.

In an early win for the embattled economist, US District Judge Jia Cobb in Washington granted Cook’s request to continue working for now. The ruling means Cook can likely attend a highly anticipated Fed policy meeting Sept. 16-17 to vote on whether to lower interest rates.

The judge concluded that the alleged mortgage misconduct likely didn’t amount to “cause” to fire her under the Federal Reserve Act, and that the way in which she was dismissed likely violated her due process rights under the Constitution.

“The best reading of the ‘for cause’ provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor’s behavior in office and whether they have been faithfully and effectively executing their statutory duties,” the judge wrote.

The judge agreed that Pulte’s allegations in a social-media post, and Trump’s later social media post announcing his intention to dismiss Cook, didn’t amount to a proper notice of the allegations against Cook.