Overview

• Cook filed suit in U.S. District Court in Washington alleging an unprecedented and unlawful removal and seeks an injunction to remain in office.
• Trump ordered her dismissed with immediate effect citing alleged false statements on mortgage applications, including claims of two primary residences; Cook denies wrongdoing.
• The Federal Reserve says it will follow court rulings, and legal analysts expect the dispute to move toward the Supreme Court given the Fed’s unique statutory protections.
• The White House is considering replacements, with Stephen Miran and David Malpass reported as potential candidates, as Trump seeks a board more open to faster rate cuts.
• Economists warn that political interference could erode Fed credibility and raise borrowing costs, pointing to Turkey and Argentina as cautionary precedents.