Overview

• In a letter posted on Truth Social, President Trump said he removed Lisa Cook effective immediately, citing allegations she claimed two primary residences on 2021 mortgage applications.
• Cook rejected the action, said the president lacks authority to fire her, and retained attorney Abbe Lowell to challenge the move.
• FHFA Director Bill Pulte referred questions about Cook’s mortgages to Attorney General Pamela Bondi, providing the basis the White House invoked for 'for cause' removal.
• Legal scholars say the statute ties removal to on‑the‑job misconduct and question whether pre‑appointment mortgage filings meet that standard, with some expecting the dispute to reach the Supreme Court.
• Markets signaled concern about Fed independence with a steepening Treasury yield curve, slight equity declines, and a softer dollar as observers note a successful ouster could let Trump reshape the board and rate policy expectations.