Audio By Carbonatix
A federal judge has temporarily blocked President Donald Trump from sacking Federal Reserve Governor Lisa Cook, who is part of the board responsible for setting US interest rates.
It marks an early setback for the White House in an unprecedented legal battle over the independence of the central bank.
In August, Trump said he had sacked Ms Cook but the Fed has said she remains as a governor.
But the preliminary ruling does not settle the key issue of whether Trump's allegation that Cook committed mortgage fraud before taking office, which she denies, is sufficient cause to have her removed from the role.
The Federal reserve declined to comment on the ruling but has previously said it would abide by the court's decision.
The BBC has contacted the White House for comment.
"This ruling recognises and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference," Ms Cook's counsel Abbe David Lowell said in a statement sent to the BBC.
"Governor Cook will continue to carry out her sworn duties as a Senate-confirmed Board Governor," he added.
Trump and Federal Housing and Finance Authority director William Pulte have said Ms Cook inaccurately described three different properties on mortgage applications, which may have enabled her to obtain lower interest rates and tax credits.
Late last month, Ms Cook sued Trump over his attempt to fire her, setting up a potential legal battle with implications for the US central bank's autonomy.
Cook has asked the court to declare Trump's firing order "unlawful and void".
The law that created the Fed says governors can only be removed "for cause," but does not define what that means or how that could be done in practice.
It is the first time that a president has tried to fire a Fed governor, and the law has yet to be tested in court.
"The best reading of the 'for cause' provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor's behaviour in office and whether they have been faithfully and effectively executing their statutory duties," District Judge Jia Cobb wrote in the preliminary ruling.
"'For cause' thus does not contemplate removing an individual purely for conduct that occurred before they began in office," she added.
The case, which is likely to end up in the US Supreme Court, is seen as crucial to the central bank's ability to set interest rates without political influence.
The ruling on Tuesday came as the central bank is due to meet next week and is expected to announce its first interest rate cut since September 2024.
Trump has repeatedly criticised the Fed's leadership, including chair Jerome Powell, and called on it to cut borrowing costs to help boost the US economy.
Latest Stories
-
Association of Small-Scale Industries empowers trade executives in Bono East with a mentorship programme
5 minutes -
AMA evacuates refuse along Graphic Road, warns against indiscriminate dumping
11 minutes -
STC interdicts driver over Pokuase overtaking incident
15 minutes -
Ekumfi: How $6m EXIM participation built a $53m industrial asset — now poised for a 24-Hour Economy breakthrough
16 minutes -
4 arrested, 142 parcels of suspected Indian hemp seized as officers reject GH¢50k bribe
16 minutes -
No MMDCE can say they don’t see galamsey – Local Government Ministry
17 minutes -
Ghana, Germany explore stronger partnership in technical and vocational education
24 minutes -
AMA urges motorists and road users to comply with traffic regulations
24 minutes -
Sam George urges One Million Coders participants to complete all three levels
25 minutes -
Communications Minister announces 2,800-site telecom expansion during Volta visit
27 minutes -
Impunity fuelling sexual abuse in Ghana – Angela Dwamena-Aboagye
28 minutes -
NUGS condemns alleged sexual abuse by Obuasi SHTS headmaster, calls for prosecution
31 minutes -
President Mahama urges investors to employ trained local residents as 1,238-acre industrial park takes off
35 minutes -
Media doing its job, but politicians fuelling insults on social media – NMAG president
37 minutes -
Child protection must be the state’s responsibility, not NGOs’ burden – ARK Foundation Boss
43 minutes