Fed: US judge blocks dismissal of central bank board member

In the dispute over US President Donald Trump's dismissal of a board member of the US Federal Reserve, the Republican suffered a setback in court. A US federal judge temporarily halted Trump's move to dismiss Lisa Cook for alleged mortgage fraud. She thereby granted a preliminary injunction sought by Cook in the US District Court of Columbia.

In August, Trump announced his immediate dismissal of Cook. In a letter to the economist, he justified the move by arguing that there were reasonable grounds to believe she had made false statements in one or more mortgage contracts. Cook then announced, through her lawyers, that she would take legal action. She argued that the president had no right to dismiss her. She denied the allegations. Cook further stated that even if she had unknowingly made false statements, this had happened years before taking office when she took out a private mortgage. Judge Jia Cobb's reasoning now states, among other things, that the president may only dismiss a member of the Fed's Board of Governors "for just cause." Thus, someone cannot be dismissed solely for conduct that occurred before taking office. She also wrote that the public interest in the Fed's independence speaks in favor of reinstating Cook.

With this decision, the power struggle between Trump and the US Federal Reserve enters the next round. For months, Trump has been demanding interest rate cuts but hasn't gotten them from the central bank. Therefore, he has repeatedly called for the resignation of current Fed Chairman Jerome Powell and then also targeted Cook. The case is expected to end up before the Supreme Court . The Fed is of great importance worldwide. The central bank of the United States aims to contribute to financial stability in the US . Cook was first nominated for the position in 2022 by then-US President Joe Biden and confirmed by the Senate. Judge Cobb was also appointed by Biden.

There is also movement in another case: The U.S. Supreme Court has agreed to rule on the legality of President Donald Trump's far-reaching global tariffs. On Tuesday, the justices accepted the Justice Department's appeal of a lower court's decision. The court had ruled that Trump exceeded his authority when he imposed most of his tariffs based on a federal law intended for emergencies. The U.S. Supreme Court acted quickly; the government had only asked it last week to review the case. The case involves tariffs that could add up to trillions of dollars over the next decade. The court has scheduled oral arguments for the first week of November.