Overview

• Lisa Cook remains on the Federal Reserve Board after a Washington hearing ended without a ruling, with Judge Jia Cobb ordering a supplemental brief under an expedited schedule.
• The White House bases its attempt on pre‑appointment mortgage allegations flagged by FHFA Director Bill Pulte, while Cook has sued to block removal, arguing the claims are a pretext and do not meet the legal standard for ousting a governor.
• ECB President Christine Lagarde said efforts to remove Cook or Chair Jerome Powell would pose a very serious danger to the U.S. and global economies by undermining central bank independence.
• If Cook is replaced, Trump could secure a 4–3 majority of his appointees on the seven‑member board, heightening concerns about political influence over interest‑rate decisions.
• Economists warn that weakening Fed independence risks higher inflation expectations and long‑term borrowing costs, with recent market positioning shifting toward inflation hedges and higher Treasury yields, as legal arguments nod to Supreme Court language affirming the Fed’s unique independence.