President Donald Trump’s decision to fire Federal Reserve governor Lisa Cook has been blocked by a judge.
Judge Jia Cobb issued a temporary restraining order in Cook’s lawsuit against her termination on Tuesday night.
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Trump said last month that he was firing Cook because of mortgage fraud allegations made against her by Federal Housing Finance Agency Director Bill Pulte.
“The public interest in Federal Reserve independence weighs in favor of Cook’s reinstatement,” Cobb wrote in an opinion on her decision Tuesday.
Cobb’s order prevents Fed Chairman Jerome Powell and the Board of Governors “from effectuating in any manner” Cook’s removal.
Abbe Lowell, Cook’s lawyer, celebrated the ruling.
“Today’s ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference,” he said.
“Allowing the President to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law,” Lowell added.
“Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor,” he continued.
The Trump administration is expected to appeal; the Supreme Court is also expected to have the final say in the case.
With Cook staying, for now, she’ll get a vote at the Fed’s next two-day meeting on Sept. 16. Trump has wanted the Fed to cut rates for months, and it is expected to do so.
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Cook previously denounced her firing. “I will not resign,” Cook said hours after Trump said he was firing her. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she added.
Lowell showed skepticism in a court hearing that Trump had cause to fire Cook. “You can’t have Director Pulte’s crazy midnight tweets be the cause,” Lowell told Cobb.