President Donald Trump’s attempt to fire Lisa Cook, the first Black woman to serve as a governor on the Federal Reserve Board, has failed — at least for now. A federal judge has blocked the attempt to remove Cook, agreeing with her lawyers that Trump did not display sufficient cause or legal authority to fire her. With the White House appealing the decision, the ongoing feud between Trump and the Federal Reserve Board continues, as does Trump’s targeting of Black people in positions of power.
Judge rules no ‘legally permissible cause for Cook’s removal’
U.S. District Judge Mia Cobb ruled Tuesday that Trump didn’t present a valid reason for removing Cook and that she can remain in her position as she fights against her firing. As Blavity reported, Trump announced last month that he was firing Cook due to allegations that she had falsely claimed two separate properties as her primary residence to achieve more favorable mortgage rates. Cobb ruled, “President Trump has not stated a legally permissible cause for Cook’s removal.” Specifically, she agreed with Cook’s lawyers that her alleged act did not relate to Cook’s “in-office conduct at all, let alone provide any examples of how Cook’s performance or personal conduct since assuming the role has been in any way deficient in carrying out her statutory duties.” In addition, Cobb ruled that Trump’s attempt to fire Cook violated her due process. Cook has not been charged with any crime related to the alleged mortgage claims at this time.
The White House issued a two-page document on Wednesday indicating that it will appeal the ruling. The fight over Cook is part of a larger campaign by Trump to exert control over the independent Federal Reserve Board. Trump is separately seeking confirmation of one of his allies, Council of Economic Advisers Chairman Stephen Miran, to the Federal Reserve Board, having nominated Miran to fill an open seat in the organization. These moves to change the composition of the Federal Reserve Board come as Trump has pressured the Fed for months to lower interest rates; the Fed declined to lower rates during its July meeting but is expected to do so when it votes again next week.
Administration goes after Black officials and Trump political opponents
Many have viewed the accusations against Cook as politically motivated, with one Trump loyalist, Federal Housing Finance Agency Director Bill Pulte, making the accusations and referring them to another Trump loyalist, Attorney General Pam Bondi, for investigation. As Rep. Ayanna Pressley, D-Mass., recently noted, Trump has used the power of the federal government against various Black public officials. He suddenly fired Carla Hayden, the first woman and first Black person to serve as Librarian of Congress, and Gen. Charles “CQ” Brown, the second Black chairman of the Joint Chiefs of Staff. Additionally, Trump has used federal troops to occupy Los Angeles and Washington, D.C., and has threatened to do the same for Chicago; Black mayors lead all three cities.
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In addition to accusing Cook, the Trump administration has made similar mortgage fraud allegations against New York Attorney General Letitia James. Democratic Sen. Adam Schiff, a vocal Trump critic, has also been accused of the same type of mortgage fraud by the White House; all three have challenged the accusations made against them. ProPublica recently reported that public records reveal that at least three current Trump cabinet members list more than one primary residence, a practice labeled as fraudulent for Cook, James and Schiff. In 2024, Trump himself, along with the Trump Organization, was found liable in a civil fraud case for massively overvaluing properties to obtain loans. However, a judge recently overturned a $355 million penalty in that case.
Despite the appearance of political motives and the apparent hypocrisy involved in attempting to push out Cook over fraud allegations, the Trump White House has signaled that it will continue its attempts to push out the first Black woman to serve as a Federal Reserve Board governor. For now, however, those efforts have failed, with Cook set to go into next week’s Fed meeting as a voting member of the financial body.
The post Trump’s Attempt To Fire Federal Reserve Board Governor Lisa Cook Blocked By Judge appeared first on Blavity.