A federal judge on Tuesday sided with the White House in the battle over control of the Consumer Financial Protection Bureau, saying he wouldn't stop the Trump administration from running the agency.

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An Obama-era official, Leandra English, had sought to derail the administration's assertion of control over the agency.

"The court will deny the request," Judge Timothy J. Kelly, of the U.S. District Court for the District of Columbia, said from the bench.

Judge Kelly's decision clears the way for White House budget chief Mick Mulvaney to continue serving as acting director of the CFPB while President Donald Trump finds a permanent replacement. Mr. Mulvaney on Tuesday spent his second day running the CFPB, following the departure of former Director Richard Cordray last week.

Ms. English had argued that her role as deputy head of the CFPB makes her the rightful acting director of the agency. Her attorney Deepak Gupta said she would appeal the decision.