Overview

• In a Truth Social letter posted late Aug. 25, the president told Lisa Cook she was removed from the Federal Reserve Board "for cause," citing mortgage-fraud allegations raised by Federal Housing Finance Administration Director Bill Pulte.
• Cook and her lawyer said they will sue to block the move, arguing the president lacks authority to fire her.
• Major U.S. indexes closed up about 0.3% to 0.4% as traders looked past the dispute and short‑term Treasury yields fell, steepening the yield curve.
• White House economic officials said they will explore additional government equity stakes following the Intel precedent, and Commerce Secretary Howard Lutnick said Pentagon officials are "thinking about" buying defense stocks.
• Company-specific news guided trading, with Boeing gaining after Korean Air’s 103‑jet order and investors watching Nvidia’s Aug. 27 earnings for the next catalyst.