Donald Trump’s bid to fire a US central bank rate-setter has suffered a setback after a federal judge blocked the move.

The president revealed last month that he was removing Lisa Cook from her post at the Federal Reserve on alleged mortgage fraud grounds.

The move was widely seen by commentators as a bid to destroy the Fed’s independence through the appointment of a new governor who would support his bid for interest rate cuts to boost the trade war-hit US economy.

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Ms Cook, who denies wrongdoing and any cause to dismiss her, was appointed to the Fed’s board by former US president Joe Biden. The board forms part of the panel that votes on US interest rate decisions.

She secured a preliminary court ruling late on Tuesday which found that the Trump administration’s claims she committed mortgage fraud prior to taking office were likely not sufficient grounds for her removal.

The White House has claimed she inaccurately described three separate properties on mortgage applications, which could have allowed her to obtain lower interest rates and tax credits.

But US District Judge Jia Cobb said: “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 by executing her duties unfaithfully or ineffectively.”

The ruling, which could yet be appealed, means she can continue in her role while her own lawsuit proceeds.

It could end up in the Supreme Court.

Mr Trump’s demands this year that the Fed cuts rates have so far fallen on deaf ears as the central bank voting has shown too much concern over trade war-linked inflation. Prices have risen as higher import duties have been passed on.

He has repeatedly called for Fed chair Jay Powell to resign but retracted threats to fire him.

The president may actually get his wish for a cut this month amid a deterioration in the employment market – also widely blamed on his trade war – as hiring has slumped.

The central bank, unlike the Bank of England, has a dual mandate to ensure maximum employment as well as keeping inflation in check.

Any rate cut would be unlikely to extinguish the Trump administration’s effort to influence monetary policy.

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The Fed’s ability to set interest rates without regard to politicians’ demands is critical to market confidence, let alone the central bank’s ability to keep inflation under control.

Neither the Fed or the White House commented on the ruling.

Ms Cook’s lawyer, Abbe Lowell, said: “This ruling recognises and reaffirms the importance of safeguarding the independence of the Federal Reserve from illegal political interference.”

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The fallout continues from the overnight release of the Epstein files. Hundreds of pages released, including correspondence penned by – it appears – our man in Washington, Lord Peter Mandelson, the UK ambassador.

And Israel launches pinpoint strikes on Qatar for the first time. What did they tell Trump, and did they keep him out of the loop? The Qataris are furious. What will happen next?

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Email us on trump100@sky.uk with your comments and questions.

The resurfacing of an affectionate greeting to paedophile Jeffrey Epstein, alleged to have come from Lord Mandelson, raises huge questions.

It couldn’t have come at a worse moment – days before Donald Trump’s state visit to the UK, in which Mandelson, the UK’s ambassador to Washington, will play a significant role.

While he focuses on crafting Anglo-American collaboration on technology, his judgment is under scrutiny on both sides of the Atlantic.

Newly released files, which had been demanded by the House of Representatives Oversight Committee on Capitol Hill, appear to contain notes he sent to Jeffrey Epstein.

Follow updates: White House denies Trump behind birthday note

One reads: “…wherever he is in the world, he remains my best pal!”

“Happy birthday, Jeffrey we love you!!” it concludes.

Mandelson’s connection to the billionaire, who died by suicide in prison while awaiting trial on sex-trafficking charges, is well documented.

A 2019 JP Morgan internal report flagged a notably close relationship between the two.

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But his alleged use of the words “best pal” suggests a closer and warmer relationship than had been previously acknowledged.

Questioned about it in 2025, the UK’s ambassador to the US expressed “deep regret” over knowing Epstein but dismissed the issue as a media “obsession”.

Peter Mandelson, once dubbed “the Prince of Darkness” within Westminster, is a veteran politician who served in cabinet under Tony Blair and Gordon Brown.

His appointment as UK Ambassador to the United States in February 2025 surprised many people.

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It is unusual for someone considered a political heavyweight to find themselves in what is traditionally a diplomatic role.

Asked about the alleged birthday greeting, the prime minister’s official spokesperson said Sir Keir Starmer had “full confidence” in the UK’s ambassador to the US.

The one thing sparing him any difficult questions from the White House is the fact that Mr Trump faces just as many himself over Epstein.