NATIONAL NEWS – Fedederal Reserve Governor Lisa Cook emergency hearing ends with no ruling

Ananya Roy, News Writer

An emergency hearing over President Trump’s attempt to fire Federal Reserve Governor Lisa Cook ended Friday with no ruling from U.S. District Judge Jia Cobb, leaving the future of the Biden appointee in limbo. Cook, the first Fed governor ever removed by a president, is fighting to keep her seat while her legal challenge plays out. Her attorney, Abbe Lowell, argued that allegations of mortgage fraud, still under Justice Department review, were being used as a “weapon” to help Trump cement a majority on the central bank’s seven-member board.

Justice Department attorney Yaakov Roth countered that the president’s decision to fire Cook for cause is beyond judicial review, dismissing her challenge as meaningless. The clash marks a dramatic escalation in Trump’s long-running feud with the Fed, which has resisted his pressure to slash interest rates more quickly. Critics warn that the move threatens the central bank’s political independence, while Trump has framed it as necessary to spur housing and economic growth.

If Cook is ousted, only two Democratic-appointed governors would remain on the Fed board. Trump signaled this week that he expects to secure a majority soon. “Once we have a majority, housing is going to swing, and it’s going to be great,” he said. The fight comes as Fed officials prepare to meet on September 16, when Wall Street expects the first interest rate cut since December.