A federal judge has ruled that a Federal Reserve board member, Lisa Cook, can stay in her post while suing Donald Trump over his unprecedented attempt to fire her.

Cook is legally challenging the US president after he sought to remove her, citing unconfirmed allegations of mortgage fraud, amid an extraordinary campaign by his administration to strengthen its control over the US central bank.

She asked US district judge Jia Cobb to impose a temporary restraining order against Trump’s attempt to “immediately” dismiss her, pending further litigation. The administration has argued that Trump is able to fire Fed governors “for cause” and appoint replacements.

Trump has spent months attacking the Fed, where most policymakers – including Cook – have so far defied his calls for interest rate cuts. He has spoken of rapidly building “a majority” on the central bank’s board, calling into question the future of its longstanding independence from political oversight.

Trump moved to fire Cook after one of his allies, Bill Pulte, whom he tapped to lead the US Federal Housing Finance Agency, alleged she had claimed two different properties as primary residences when obtaining mortgages in 2021.

“How can this woman be in charge of interest rates if she is allegedly lying to help her own interest rates?” Pulte wrote on X. He referred the case to the Department of Justice for investigation.

After Cook declined to resign, Trump tried to remove her from the Fed’s board. The justice department is now looking into the allegations of mortgage fraud.

In a court filing, Cook’s attorneys insisted she “did not ever commit mortgage fraud” as they outlined their case.

Multiple federal agencies were provided details of Cook’s mortgage arrangements when she was first nominated, by Joe Biden, to join the Fed’s board in 2022, according to her representatives. “The Government has long known about the alleged facial inconsistencies in Governor Cook’s financial documents,” the filing said.

On one background check form, for example, Cook said that she had listed one property in Michigan as a primary residence and another in Georgia as a second home.

On a separate questionnaire, she listed both homes as her “present” residence; the Michigan property as her “current permanent residence”; and a third property, in Massachusetts, as both a present residence, but also a second home and rental property, she said.