Overview

• Trump posted a letter on his social media removing Cook effective immediately, citing an FHFA criminal referral alleging false statements on 2021 mortgage documents.
• The allegation centers on listing two properties as primary residences; Cook has denied wrongdoing, refused to resign, and asserted the president lacks authority to oust her, and no charges have been filed.
• Legal scholars say the Federal Reserve Act’s “for cause” standard makes a court fight likely and note a judge could allow Cook to keep serving while litigation proceeds, potentially reaching the Supreme Court.
• The Justice Department is reviewing the referral, and the Fed and White House did not immediately comment on the unprecedented dismissal.
• Markets showed a steeper Treasury yield curve after the announcement, as the White House seeks to reshape the board with another vacancy already open and a nominee, Stephen Miran, pending Senate confirmation.