WASHINGTON, D.C.: A federal judge has delivered an early blow to President Donald Trump's effort to fire Federal Reserve Governor Lisa Cook, ruling that the White House lacks sufficient grounds to remove her while the case proceeds.

U.S. District Judge Jia Cobb in Washington, D.C., issued the temporary order this week, saying the administration's claims that Cook committed mortgage fraud before taking office were not enough to justify her dismissal.

"President Trump has not identified anything related to Cook's conduct or job performance as a Board member that would indicate that she is harming the Board or the public interest," Cobb wrote.

Trump moved to oust Cook in late August, but the Fed has maintained that she continues in her role. The ruling prevents the central bank from carrying out her removal as her lawsuit advances through the courts.

Cook, who became the first Black woman to serve as a Fed governor in 2022, has denied the allegations and sued the administration, arguing the claims are a pretext to punish her for her monetary policy views. Her lawyer, Abbe Lowell, called the ruling "a reaffirmation of the importance of safeguarding the independence of the Federal Reserve from illegal political interference."

The case, expected to eventually reach the Supreme Court, could shape the extent of presidential power over the Fed and test the institution's century-long independence in setting interest rates.

Trump has repeatedly demanded aggressive rate cuts, clashing with Fed Chair Jerome Powell. The central bank is widely expected to lower rates at its September 16 and 17 policy meeting.

The statute creating the Fed allows governors to be removed only "for cause," though the law does not define the term. No president has ever removed a Fed governor, leaving the question untested in court. Cobb wrote that the best interpretation of the law restricts removal to misconduct while in office.

The administration, along with Federal Housing and Finance Authority Director William Pulte, accuses Cook of misrepresenting details on three mortgage applications years before her confirmation. The Justice Department has opened a probe into the matter, with grand jury subpoenas issued in Georgia and Michigan.

Cook has denied wrongdoing, saying she "did not ever commit mortgage fraud" and that, in any case, pre-confirmation conduct would not be grounds for removal. The White House did not immediately comment, and Trump ignored a reporter's question on the ruling.