Overview

• Cook filed suit in federal court in Washington seeking an injunction to remain in office and challenging the president’s authority to remove a Senate‑confirmed Fed governor.
• The Federal Reserve said it will comply with court rulings, noting that governors serve long terms and may be removed only for cause under the Federal Reserve Act.
• Trump’s dismissal letter cited alleged false statements in past mortgage filings as grounds; Cook denies wrongdoing and says the claims predate her Fed service.
• Legal analysts say the dispute raises novel questions about presidential removal powers and could reach the U.S. Supreme Court, given the Fed’s unique statutory status.
• Economists and market watchers warn that undermining Fed independence could erode inflation credibility and financial stability, with foreign precedents offered as cautionary examples.