Lisa Cook seeks judicial order letting her stay on Fed board

Federal Reserve Governor Lisa Cook is urging a federal judge to keep her at the central bank while the courts consider the legal validity of President Trump’s attempt to fire her.

Lawyers for Ms. Cook sought a temporary restraining order from U.S. District Judge Jia Cobb during Friday’s two-hour hearing, which ended without an immediate ruling.

Mr. Trump says he can fire Fed governors “for cause” and that Ms. Cook can no longer be trusted after revelations she listed properties in Michigan and Georgia as her primary residences on 2021 mortgage documents.

Ms. Cook’s removal and replacement, alongside confirmation of a pending governor nominee, would give the White House a Trump-appointed majority on the Fed board as he seeks lower interest rates from central bankers.

Ms. Cook’s lawyer, Abbe Lowell, said that’s the real motivation behind Mr. Trump’s push to oust her and that it’s a problem.

“He’s already said he wants a majority. He’s bragged that he’s going to get it,” Mr. Lowell told Judge Cobb, a Biden appointee.

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SEE ALSO: ‘Three strikes’: Mortgage regulator flags third issue in Lisa Cook’s mortgage documents

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Meanwhile, Justice Department lawyers say Mr. Trump has the authority to fire Ms. Cook and replace her.

One of the government’s lawyers, Yaakov Roth, told the court on Friday that Ms. Cook had not explained why she tried to list two residences as her primary home.

Federal Housing Finance Agency Director Bill Pulte also alleges Ms. Cook took out a 15-year loan on a condominium in Cambridge, Massachusetts, as a second home, only to list it as an investment-rental property later.

In each instance, government officials say the documents as written would have given Ms. Cook more favorable loan terms.

“3 strikes and you’re out,” Mr. Pulte wrote on X.

President Joseph R. Biden appointed Ms. Cook to the Fed in 2022.

Mr. Trump’s move to fire her is unprecedented and raises questions about the Fed’s ability to maintain political independence.

“This is an obvious smear campaign aimed at discrediting Gov. Cook by a political operative who has taken to social media more than 30 times in the last two days and demanded her removal before any review of the facts or evidence,” Mr. Lowell said Friday in a statement on Mr. Pulte’s criminal referrals. “Nothing in these vague, unsubstantiated allegations has any relevance to Gov. Cook’s role at the Federal Reserve, and they in no way justify her removal from the Board.”

Mr. Pulte and other Trump officials have responded by saying the evidence of potential mortgage fraud is stark, and they can’t ignore it.

• This story is based in part on wire service reports.