Federal Court Blocks Trump's Attempt to Oust Lisa Cook from Federal Reserve

Breaking News: Trump Fails to Fire Lisa Cook as Federal Reserve Independence Holds Firm A federal court has ruled that embattled Federal Reserve Governor Lisa Cook can remain in her position while she fights President Donald Trump's efforts to fire her. The decision, made on Tuesday, is a significant blow to the Trump administration's attempts to assert more control over the traditionally independent Fed. Timeline of Events: On August 25, Trump announced he was firing Cook over allegations of mortgage fraud related to two properties she purchased in 2021. Cook's lawyers argued that firing her was unlawful because presidents can only fire Fed governors for cause, not at will. The court has now sided with Cook, allowing her to continue serving while the case unfolds. Immediate Impact: The ruling is a major victory for Federal Reserve independence and a setback for Trump's efforts to politicize the central bank. Cook's lawyers have vowed to appeal any future attempts to remove her from office. The decision also underscores the importance of judicial checks on executive power in maintaining the integrity of independent institutions. Background Context: The Federal Reserve is an independent agency responsible for setting short-term interest rates to achieve its congressionally mandated goals of stable prices and maximum employment. Congress has long sought to insulate the Fed from day-to-day politics, recognizing the importance of its independence in maintaining economic stability. What Happens Next: The Trump administration is likely to appeal the court's decision, setting up a potentially lengthy and contentious battle over Cook's fate. The case will have significant implications for the future of Federal Reserve independence and the balance of power between the executive and judicial branches of government. *This story is developing. Information compiled from Fortune reporting.*