Federal Court Backs Fed Governor Lisa Cook Amid Trump's Termination Efforts

A federal court has allowed Federal Reserve Governor Lisa Cook to remain in her position amid President Trump's attempts to fire her over alleged mortgage fraud. Cook argues the dismissal is unlawful and demands proper procedural rights, maintaining her innocence.

In a significant legal battle, a federal court ruled on Tuesday that Federal Reserve Governor Lisa Cook can retain her position while challenging President Donald Trump's efforts to remove her. Trump's administration accused Cook of mortgage fraud, claims she has denied.

This legal confrontation reflects ongoing tensions between the White House and the Federal Reserve over independence and control, as Trump attempts to increase influence over the institution responsible for setting key interest rates. Congressional efforts have traditionally aimed to shield the Fed from political influence.

Cook allegedly labeled two properties as 'primary residences', possibly securing more favorable mortgage terms. Her legal team insists firing her without proper procedure contradicts lawful terms, and she deserves a hearing to contest these allegations.

(With inputs from agencies.)