Overview

• Cook rejected the president’s announcement and retained attorney Abbe Lowell to file suit, aiming to remain on the Board during the litigation.
• The White House cites mortgage-fraud allegations raised publicly by FHFA director Bill Pulte; the DOJ opened an inquiry but has brought no charges.
• In its first statement on the dispute, the Federal Reserve highlighted long terms and for-cause removal under the Federal Reserve Act and said it will abide by any court decision.
• Legal analysts call the attempt unprecedented and expect a fast-moving fight that could reach the Supreme Court, with near-term questions about Cook’s ability to vote at the September policy meeting.
• Trump says replacing Cook would soon give him a Board majority, a shift economists and former officials warn could erode the central bank’s independence; Janet Yellen labeled the move unlawful and dangerous.