The fight between the White House and the Federal Reserve over the attempted dismissal of Governor Lisa Cook has moved into the courts, opening a legal battle that could redefine presidential power over the central bank, Reuters reported.

On Tuesday, US District Judge Jia Cobb issued a preliminary order preventing President Donald Trump from removing Cook while her case proceeds. The ruling means the Fed governor, the first Black woman to serve on the Board, will continue in her role as policymakers prepare for a September 16-17 meeting where a rate cut is widely expected.

The case hinges on whether a president can remove a Fed governor “for cause,” a phrase included in the Federal Reserve Act but never tested in court. Cobb said the administration’s argument—that Cook engaged in mortgage fraud before taking office—was unlikely to meet that threshold. “President Trump has not identified anything related to Cook’s conduct or job performance … that would indicate that she is harming the Board or the public interest,” the judge wrote.

Trump, backed by housing regulator William Pulte, has accused Fed Governor Cook of past mortgage fraud, prompting a Justice Department probe. Cook denies the claims, calling them politically motivated, while her lawyer argues the case is about protecting Fed independence. The White House insists presidents have wide authority to remove governors, but no precedent exists, and the dispute could ultimately set a landmark ruling on the central bank’s autonomy.