Judge: Trump has unjustly dismissed director Central Bank

This article was last updated on September 10, 2025

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Judge: Trump has unjustly dismissed director Central Bank

The US President Trump has wrongly dismissed a director of the Federal Central Bank (the FED), a judge in the US. That means that Lisa Cook can stay on. She must, however, challenge the attempts of the president to dismiss her.

Trump fired Cook last month after he accused her of possible mortgage fraud before she became a director. But the judge concludes that there was no reason for that. The way in which she was fired would also have violated her right to a fair trial.

The Ministry of Justice is expected to quickly appeal the decision. The American Supreme Court will probably have the last word in the dismissal case.

In 2022 the FED director was appointed by President Joe Biden. Cook is the first black woman ever on the board of the Central Bank.

Interest rate

Next week the central bank will vote on an interest rate reduction. That interest is now 4.25 to 4.5 percent, but Trump has long wanted it to go down considerably, with 2 percentage points. The Fed probably reduces interest this month by 0.25 percentage point, is expected in the financial markets. The idea is that the price increases in the US are slowed down.

Protecting stable prices is one of Fed’s tasks. The dome emphasizes the long term, while Trump wants to greatly reduce interest rates to stimulate the economy quickly.

Due to the decision of the judge, Cook can still participate in the vote on the interest rate reduction.

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