FOX Business host Larry Kudlow unpacks the accusations of mortgage fraud on ‘Kudlow.’
A federal judge on Tuesday blocked President Donald Trump from firing Federal Reserve Governor Lisa Cook, allowing her to continue in her current role, for now, even as lawyers for the administration are expected to immediately appeal the decision to a higher court for review.
U.S. District Judge Jia Cobb, a Biden appointee based in Washington, D.C., said on Tuesday that she will be moving Cook’s request into a preliminary injunction, which has the same effect, but will last through the entire case until a decision is made, pending any appeal from the government.
The judge said Cook has shown “irreparable harm” in her time away from the Federal Reserve as she is one of the leaders in controlling monetary policy, adding that “she has lost the ability to fulfill a high-ranking, public-servant role to which she is entitled.”
The decision, which follows the Justice Department’s criminal investigation into Cook over allegations of mortgage application fraud, is the latest revelation in a high-stakes lawsuit likely headed to the Supreme Court. The probe could further complicate Cook’s fight to stay in her role on the Fed board, the panel of central bankers tasked with guiding the nation’s monetary policy.
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A side-by-side photo of President Donald Trump and Federal Reserve Governor Lisa Cook. ( Chip Somodeville/Al Drago/Getty Images / Getty Images)
After a hearing that lasted more than two hours on Aug. 29, Cobb indicated she would move quickly on the case — specifically on whether Trump acted unlawfully in seeking to fire Cook over mortgage fraud allegations.
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Still, she also acknowledged the inherent complexities of the case and the novel requests that both Cook’s lawyers and lawyers for the Justice Department were grappling with for the first time in court.
Last week, Cobb granted a request from Cook’s attorneys seeking additional time to file their formal motion for a temporary restraining order (TRO).
The TRO is a short-term, emergency court order designed to maintain the status quo until a full hearing can be held. In plain terms, Cook asked the court to pause the firing and keep her in office until a full legal hearing can determine whether Trump’s removal was lawful.
Lisa Cook, member of the Board of Governors of the US Federal Reserve, attends a meeting at the Federal Reserve Board building in Washington, D.C., on June 25, 2025. (Saul Loeb/AFP/Getty Images / Getty Images)
Trump ousted Cook on Aug. 25, which prompted her to sue him in federal court three days later. Her lawsuit names as defendants Trump, the Board of Governors of the Federal Reserve System, and Federal Reserve Chairman Jerome Powell.
Cook’s lawsuit argues that Trump’s move to fire her is unlawful and undermines the Federal Reserve’s independence. The suit, which was filed in federal court on Aug. 28, does not address the allegations that Cook listed multiple houses as a primary residence on mortgage filings.
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The allegations originated with Bill Pulte, a Trump appointee to the federal agency that regulates Fannie Mae and Freddie Mac.
Pulte tied Cook to a trio of properties in Michigan, Georgia, and Massachusetts, which prompted scrutiny over whether Cook had misrepresented how the homes would be used.
A Google Map view of the Four Seasons hotel and condominiums in Atlanta, Georgia and of a home in Ann Arbor, Michigan, both tied to Federal Reserve governor Lisa Cook. (Google Maps/Getty Images / Google Maps)
Meanwhile, it’s unclear whether Cook has tried to enter the Federal Reserve’s Foggy Bottom headquarters since Trump issued his termination letter.
The Federal Reserve declined to say whether she has tried to work from her office, is working remotely, or retains access to the email and other resources she needs for her job.
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Her ascension marked a historic first, as she became the first Black woman to serve as a governor on the Federal Reserve Board of Governors, commonly known as the Fed board.
Federal Reserve Chairman Jerome Powell swears in Lisa Cook as a member of the Board of Governors of the Federal Reserve System in May 2022. (U.S. Federal Reserve photo / Fox News)
Now, her potential removal from that same panel could mark another historic first.
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Before Cook filed her suit, a Fed spokesperson acknowledged the potential legal feud and wrote in an Aug. 26 statement that the Fed will “abide by any court decision.”
This is a developing story. Please check back for updates.
