A federal judge has issued a temporary restraining order preventing President Donald Trump from firing Federal Reserve Governor Lisa Cook. This ruling allows Cook to remain on the board of the central bank while her case is pending. She will continue her duties during this period.

Judge Jia Cobb stated, "the Court will enter an injunction directing [Fed Chair Jerome] Powell and the Board of Governors to allow Cook to continue to operate as a member of the Board for the pendency of this litigation." The judge emphasized that the public interest in maintaining the independence of the Federal Reserve supports Cook’s reinstatement. Cobb noted that this independence is essential for the stability of the nation’s banking system.

Cook's legal team argued in federal court in Washington, D.C., that Trump’s attempt to dismiss her was illegal and lacked the necessary cause. Under federal law, a Fed governor can only be removed for cause, which typically implies some form of wrongdoing. The judge is set to hear the details of the case in a future hearing.

Trump's move to fire Cook occurred in late August, based on allegations of mortgage fraud made by one of his political appointees. However, Cook has not been charged with any crime. Her lawyers asserted in a recent filing, "Governor Cook did not ever commit mortgage fraud."

The Federal Reserve has refrained from commenting on the judge's order but previously stated it would comply with any court decision. Abbe Lowell, Cook's attorney, remarked, "Today’s ruling recognizes and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference. 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. Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor."

Lisa Cook is notable for being the first Black woman to serve as a governor on the Federal Reserve Board in its more than 110-year history. Prior to her appointment, she was a professor of economics and international relations at Michigan State University.