Overview

• FHFA Director Bill Pulte referred allegations that Cook improperly claimed two homes as primary residences to the Justice Department, which has opened an inquiry with no charges filed.
• Cook says the president lacks authority to remove her and intends to challenge the action in court, while the Federal Reserve says it will abide by any court decision.
• White House economic adviser Kevin Hassett urged Cook to take leave during the dispute, calling it the honorable step as litigation proceeds.
• Legal analysts note the case could reach the Supreme Court given the Fed’s unique structure and the statute allowing removal only “for cause,” a standard that has never been tested for a sitting governor.
• If the removal stands and a successor is confirmed, Trump could secure a majority on the seven‑member Board of Governors, increasing his influence over monetary policy.