A federal court issued a preliminary injunction yesterday against President Trump’s removal of Federal Reserve Governor Lisa Cook from the Fed board.
Trump last month announced he was removing Cook after Federal Housing Finance Agency Director William Pulte alleged that she made false statements on mortgage agreements. Cook filed a lawsuit against the administration in U.S. District Court for D.C., arguing that federal law allows the president to remove Fed governors only “for cause,” and that the claims made against her have not been investigated or proven.
Cook’s attorneys request a temporary restraining order preventing her removal while the court considers the case. District Judge Jia Cobb granted the request, finding the legal challenge raises “many serious questions of first impression that the court believes will benefit from further briefing on a non-emergency timeline.” Cobb also found that Trump’s actions “also likely violated Cook’s procedural rights under the Fifth Amendment’s Due Process Clause.” She granted a preliminary injunction because the standards for a temporary restraining order and a preliminary injunction “are the same.”
The Trump administration has appealed the court’s decision.
