A judge temporarily blocks Trump's attempt to fire the Fed governor.

WashingtonLisa Cook can retain her position as governor of the Federal Reserve while she continues her legal battle with Donald Trump for trying to fire her. On Tuesday, a federal judge ruled has temporarily blocked the cessation In a new judicial setback for the US president and his attempt to erode the independence of the US central bank, the legal battle between Cook and Trump is the culmination of the president's campaign to pressure the Fed to lower interest rates. The president will most likely appeal the decision until it ends up on the Supreme Court bench, where the conservative majority has previously ruled in his favor.

Cook filed the lawsuit against Trump on August 28, three days after the president announced he was firing him, citing allegations of mortgage fraud. The president invoked the powers granted to him by the Fed's charter to expel any member found to have committed professional negligence or a crime. But Trump is relying on accusations that have not been proven in court. The Republican wants to use the Cook case as an opening to escalate the case to the Supreme Court and create jurisprudence that would allow him to make a much more lenient interpretation of the rule. All this to ensure that in the future he can more easily fire other Fed members who don't do his part.

Trump has taken his harassment campaign against the Fed to unprecedented levels. For months, the president has been critical of the US central bank for not cutting interest rates and had repeatedly threatened to fire its chairman, Jerome Powell. Cook's dismissal has crossed a red line that not only jeopardizes the Fed's independence but also the US economy and its credibility.

Trump's strategy for advancing legal action is based on the assertion that there is "sufficient evidence" to remove Cook. He thus focuses on the standard for determining what constitutes sufficient grounds to fire a Fed governor, even though the statutes are very clear on this matter.

The accusation against Lisa Cook

Federal Housing Finance Agency Director Bill Pulte accused Cook of committing fraud in the mortgage application for two properties in 2021. One home was in Michigan and the other in Atlanta, and Cook had reported that both were his primary residence in the documents filed. After launching the accusation, Pulte assured that he would present the information to the Department of Justice in a criminal referral.

Although Cook has said that he will not resign and that the case must be resolved in court, Trump is already looking for a replacement. According to sources familiar with the conversations in theWall Street Journal, the president is reportedly considering appointing Stephen Miran, a sympathetic economic advisor whom he had already nominated for the vacancy on the board of governors vacated by Adriana Kugler earlier this month. Trump is therefore likely to consider appointing Cook to the position, as his term is longer and expires in 2038. Another name Trump has considered is former World Bank president David Malpass, another ally of the magnate and a critic of the Fed.