Overview

• The president posted a letter on Truth Social removing Cook, citing FHFA director Bill Pulte’s mortgage allegations and noting a Justice Department review.
• Cook rejects the accusations, says the president lacks authority to dismiss her, and has hired outside counsel to fight the action.
• Federal Reserve governors are generally removable only for cause, and legal analysts say a court challenge could determine whether she remains in her seat during litigation.
• Market commentators warn the move could undermine confidence in Fed independence and weigh on the dollar, with particular sensitivity against emerging‑market currencies such as the Mexican peso.
• Advisers say selecting a successor to Chair Jerome Powell could take months, and ousting Cook would let the White House seek a new governor who favors rate cuts subject to Senate confirmation.