WASHINGTON: A US federal judge on Tuesday temporarily blocked President Donald Trump`s move to fire Federal Reserve Governor Lisa Cook as she challenges her ouster from the central bank.
Judge Jia Cobb granted Cook`s request for an order to remain on the bank`s board while her lawsuit plays out just a week before a highly anticipated Fed rate meeting.
In her opinion, judge Cobb found that Cook was `substantially likely` to succeed in certain claims, including her argument that Trump violated the Federal Reserve Act as her removal did not comply with the statute`s `for cause` requirement.
`The public interest in Federal Reserve independence weighs in favor of Cook`s reinstatement, Cobb added.
Trump did not respond to a question about the ruling asked by a reporter Tuesday night, as he exited a restaurant in Washington.
Cook`s lawyer Abbe David Lowell praised theruling, saying it `recognises and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference.
`Allowing the President to unlawfully remove Governor Cook on unsubstantiated and vague allegations would endanger the stability of our financial system and undermine the rule of law,` Lowell said.
The Supreme Court suggested in a recent ruling that Fed officials can only be removed `for cause,` which could be interpreted to mean malfeasance or dereliction of duty.
In Tuesday`s opinion, Cobb also noted that Cook`s case was the first such removal `in the Federal Reserve`s 111-year history,` and questioned the nature of the Trump administration`s accusations.
``For cause` thus does not contemplate removing an individual purely for conduct that occurred before they began in office,` Cobb wrote.-AFP