A judge blocked President Trump from firing Federal Reserve Governor Tim Cook on Tuesday evening as her lawsuit over the firing progressed through court.

Explaining the decision to grant Cook a temporary restraining order barring her removal, U.S. District Judge Cobb wrote: "The public interest in the independence of the Federal Reserve supports Cook's reinstatement."

"At this preliminary stage, the court finds that Cook has compellingly demonstrated that her alleged departure violated the 'for cause' clause of the Federal Reserve Act," Cobb said.



The judge wrote that the "best reading" of the provision is that the basis for removing a Fed governor is limited to actions related to the governor's conduct while in office.

"Thus, 'for cause' does not contemplate the removal of an individual from office solely because of conduct prior to assuming office, " Cobb wrote in federal court in Washington, D.C.

The judge was referring to Cook's mortgage fraud allegations, which Trump used as justification for firing the first Black female Federal Reserve governor.

The Supreme Court is expected to have the final say in the case, which marks the first time a U.S. president has fired a Fed governor for alleged cause.

Cobb's decision means Cook will attend the next Fed meeting, which begins on September 16. The Fed is expected to cut interest rates at the two-day meeting.

Trump said on August 25 that he fired Cook because Federal Housing Finance Agency Director Pulte suggested that Cook committed mortgage fraud when he signed documents on two properties he owned.

Cook, who has denied any wrongdoing, signed the documents before joining the Fed.

Trump's attempt to oust Cook follows months of unsuccessful pressure on the Fed and its chairman, Jerome Powell, to cut interest rates. Trump seriously considered firing Powell over the summer.

If Cook is removed, Trump would nominate her successor, meaning he would nominate a majority of the Fed's seven governors.

The Senate Banking Committee is scheduled to vote on Wednesday on Trump's nominee, Michelle Miller, chair of the Council of Economic Advisers, to the Federal Reserve Board of Governors. Milan would replace Steve Kugler, who resigned in a surprise move in August.

Cobb's order on Tuesday directs Powell and the Fed's board of governors "not to remove Cook in any manner" as a result of Trump's order.

"Today's ruling recognizes and reaffirms the importance of protecting the independence of the Federal Reserve from unlawful political interference," Cook's attorney, Lowell, said in a statement.

"Allowing the President to unlawfully remove Governor Cook based on unsubstantiated and vague allegations would jeopardize the stability of our financial system and undermine the rule of law," Lowell said. "Governor Cook will continue to perform her sworn duties as a Senate-confirmed Governor of the Board."

"President Trump legally removed Tim Cook from his highly sensitive position on the Federal Reserve Board of Governors overseeing financial institutions, citing credible allegations of mortgage fraud," White House spokesman Desai said in a statement.

"This ruling will not be the final word on this matter, and the Trump administration will continue to work to restore accountability and confidence in the Federal Reserve," he said.

During an Aug. 29 court hearing, Lowell scoffed at the idea that Trump had legal grounds to fire her.

"You can't use Chief Pulte's crazy tweet in the middle of the night as an excuse," Lowell told Cobb during the hearing.