Overview

• Cook filed her lawsuit in federal court in Washington seeking an injunction to remain on the Board and a declaration that the dismissal is unlawful.
• Her complaint argues the Federal Reserve Act limits removal to for-cause grounds, asking judges to reaffirm protections tied to governors’ fixed terms.
• Trump’s order cites allegations of false statements on mortgage applications flagged by FHFA chief William Pulte, accusations Cook denies and which predate her Fed tenure.
• The Federal Reserve said it will follow any court rulings and emphasized the statute’s tenure protections, while legal analysts expect a prolonged fight that could go to the Supreme Court.
• Trump has said he has a replacement in mind and reports point to Stephen Miran or David Malpass, as economists warn that politicized appointments could undermine Fed credibility and unsettle markets.