By Megan Leonhardt

President Donald Trump's lawyers are pushing back on Federal Reserve governor Lisa Cook's bid to temporarily block her removal from the central bank.

In a response filed Thursday, Trump's legal team urged a federal judge to deny Cook's request for an emergency temporary restraining order, calling the legal grounds behind the procedural challenge "misguided and futile."

Cook launched a legal battle on Aug. 28 to keep her job after Federal Housing Finance Agency Director Bill Pulte alleged that she made false claims on mortgage documents that may have secured her more favorable loan terms. Trump cited that alleged mortgage fraud as cause for dismissal in an Aug. 25 letter terminating Cook. The Department of Justice's investigation into the allegations is ongoing, and Cook hasn't been convicted of any wrongdoing.

Cook's lawsuit contends that Trump's firing violated her right to due process and her statutory right to notice and a hearing under the Federal Reserve Act.

In the latest pushback, it appears Trump's legal team is contending the president didn't have to wait until Cook was proved guilty before moving forward with the removal. The opposition memorandum filed Thursday also notes that even if Cook had been given an "opportunity to be heard," as Cook said she's entitled to, there's no evidence that it would've changed Trump's mind.

"The bottom line is that the statute provides for the President to remove a Governor 'for cause'...the President exercised that authority after public revelations of Dr. Cook's mortgage misconduct; and there is no basis in the statute, the Constitution, or principles of equity for a district court to second-guess that determination, let alone to order reinstatement. At minimum, Dr. Cook has not made the strong showing necessary to secure the extraordinary preliminary injunctive relief that she seeks," the memorandum states.

The memorandum comes after Federal Judge Jia Cobb asked during a hearing on Friday that both sides submit written arguments in support and opposition of the temporary restraining order.

While both sides are seeking a quick ruling, Trump's legal team specifically asked that Judge Cobb issue her ruling by Sept. 9 so that, if needed, they can seek appellate relief before the Sept. 16-17 meeting of the Federal Open Market Committee.

Cook, the first Black woman to serve on the Fed's board, has argued that while a president has the statutory authority to fire a Fed governor, they can only do so "for cause." That typically requires evidence that there were instances of "inefficiency, neglect of duty, or malfeasance" committed during an official's term of service. Disagreements over policy aren't considered cause for removal.

In terminating Cook, the lawsuit contends, Trump relied on unproven allegations of misconduct that predate her confirmation and don't meet the "for cause" standard. Further, the complaint notes that Trump hasn't cited any alleged wrongdoing committed during the course of Cook's official duties as a Fed governor.

"It is clear from the circumstances surrounding Governor Cook's purported removal from the Federal Reserve Board that the mortgage allegations against her are pretextual, in order to effectuate her prompt removal and vacate a seat for President Trump to fill and forward his agenda to undermine the independence of the Federal Reserve," the complaint says.

Along with Trump, Powell and the Fed's Board of Governors are also named as defendants to the extent that they have "any ability to take any action to effectuate President Trump's purported termination" of Cook.

Her decision to include the Fed officials in her lawsuit and bid for a restraining order doesn't indicate that Cook is accusing her colleagues of any wrongdoing. Rather, it ensures that all parties involved will have to abide by any court rulings.

As the case works its way through the legal process, the Fed will continue to carry out its duties as established by law, which include promoting maximum employment, stable prices, and a well-functioning financial system, a Fed spokesperson said last Tuesday. The central bank will abide by any court decision on the issue of Cook's continued employment, the spokesperson said.

Write to Megan Leonhardt at megan.leonhardt@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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September 04, 2025 13:51 ET (17:51 GMT)

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