A federal judge in the U.S. has temporarily precluded President Donald Trump’s effort to eliminate Federal Reserve Governor Lisa Cook, claiming that there were insufficient legal reasons. Judge Jia Cobb determined that the allegations brought against her by the administration, associated with mortgage frauds, did not justify her termination at this point.
The ruling retains the position of Cook on the Fed Board, a signification move in protecting the independence of the institution in the face of political instability. In 2022, Cook was appointed and has been a strong advocate on financial stability and regulatory policy. The judgment will be a strong reinforcement of executive authority, as the judiciary has been vocal in its opposition to politicizing the central bank even as markets keep a close eye on what Washington would do next.
