Overview

• Cook filed a federal lawsuit in Washington seeking an injunction to preserve her seat and named President Trump, Chair Jerome Powell and the Board of Governors as defendants.
• A judge set a near-term hearing for Friday in D.C., with the case assigned to U.S. District Judge Jia M. Cobb.
• The dispute turns on the statute’s undefined “for cause” standard and whether alleged conduct before Cook joined the Fed can justify removal.
• The allegations were referred to the Justice Department by FHFA Director Bill Pulte; DOJ is investigating, and Cook denies wrongdoing and has not been charged.
• The White House says Trump acted lawfully under 12 U.S.C. §242, the Fed says it will follow any court ruling, and a successful removal could let Trump fill the seat and influence rate policy through a strengthened bloc of appointees.