Judge Considers Trump’s Order to Expel Fed Governor
In Washington, D.C., a federal judge is currently deliberating over President Trump’s directive to expel Federal Reserve Governor Lisa Cook. The discussions spanned more than two hours on Friday, involving arguments from Cook’s lawyer, Abbe Lowell, and a representative from the Justice Department.
However, the hearing concluded without a clear timeline regarding when Judge Jia M. Cobb would decide on the request for a temporary restraining order submitted by Cook’s legal team just the day before.
Though Cobb did not reveal her inclination, she did highlight the importance of the Fed’s independence.
On September 16th and 17th, the Fed’s board and several Reserve Bank presidents are set to convene in D.C. to deliberate on monetary policy, which may include adjustments to interest rates.
During the proceedings, Lowell contended that Cook’s due process rights were violated due to the lack of adequate notice regarding allegations of mortgage fraud. He claimed the administration had not fired her “for a cause.”
Lowell, who has represented notable figures such as Hunter Biden, argued that Cook’s dismissal was likely influenced by Trump’s irritation over Fed Chairman Jerome Powell’s refusal to lower interest rates. He suggested that the president lashed out at the commission’s independence, aiming instead at Cook as a consequence.
Lowell elaborated that the term “cause” implicitly means Cook would not comply with any pressure to decrease interest rates.
Cook received a letter regarding her termination on August 25, which followed a criminal referral made to the Department of Justice by Bill Pulte, head of the Federal Housing Finance Agency. Pulte accused Cook of improperly designating two properties as her main residences for 2021.
It’s worth noting that Cook only started leasing properties in Georgia starting in 2022. On August 15, the FHFA chief made the criminal referral based on these claims.
Pulte’s second referral, submitted on Thursday, alleged that Cook falsely categorized a condo in Cambridge, Massachusetts, on government ethics forms, while mislabeling it as a “second home” in mortgage documentation between 2021 and 2025.
In a post on X, he noted, “Three strikes and you’re out,” suggesting the gravity of the situation.
At the hearing, DOJ attorney Yaakov Roth argued that Cook’s misrepresentation of any of her properties as primary residences was “intentional,” thus warranting either criminal charges or negligence, which could lead to her removal.
Roth emphasized that it wasn’t an issue that these alleged fraudulent actions occurred before Cook’s 15-year term at the Fed commenced.
Furthermore, Cook has yet to provide an explanation for the discrepancies in the mortgage documents, according to Roth.
“Are there any controversies regarding essential facts?” Roth posed to the court, expressing skepticism over the absence of prior discussion on such matters.
After the upcoming holiday weekend, both parties will have the opportunity to submit more briefs, with Judge Cobb set to reassess the motion for a temporary restraining order as a potential provisional injunction.
