Overview

• Trump posted a letter firing Cook with immediate effect, citing alleged mortgage misstatements flagged by the housing finance regulator in a referral to the Justice Department.
• Cook, the first Black woman on the Fed board, refused to resign, hired attorney Abbe Lowell, and said she will seek legal remedies to block the action.
• Federal law allows governors to be removed only for cause, and legal experts say the scope of presidential removal power over the Fed is unsettled and likely to be tested in court.
• The FHFA referral is with the Justice Department, which is preparing or conducting an inquiry into the allegations, according to reporting; Cook has not been charged.
• Analysts warn that perceived politicization could weaken the dollar and lift volatility, while the White House push to replace Cook and confirm nominee Stephen Miran could shift the Fed toward faster rate cuts.