Overview

• Cook filed her suit in the U.S. District Court for the District of Columbia seeking an injunction that would keep her in office and reaffirm governors’ statutory protections.
• The Federal Reserve said board members serve long terms and can be removed only for cause under the Federal Reserve Act, and it pledged to comply with court rulings.
• Trump justified the dismissal by citing alleged false statements on mortgage applications tied to complaints from FHFA chief Bill Pulte, allegations Cook denies and says predate her Fed service.
• Legal scholars expect the dispute over presidential removal power at the Fed to advance through appeals and potentially reach the U.S. Supreme Court, given recent rulings that treat the Fed as uniquely structured.
• Trump has signaled he has a replacement in mind, with reports naming Stephen Miran and David Malpass, as economists and central bankers warn the fight threatens Fed independence and could unsettle global markets.