Overview

• Trump posted a letter on Truth Social declaring Cook removed effective immediately, citing authority under the Constitution and the Federal Reserve Act and pointing to an FHFA referral alleging mortgage-document misstatements involving two claimed primary residences.
• Cook, the first Black woman to serve on the Fed’s Board of Governors, rejected the order, said no lawful cause exists, and has begun legal action to block her removal.
• Federal law allows removal of governors only for “just cause,” a vague standard that legal analysts say will likely be tested in court given that Cook has not been charged with any crime.
• Markets turned cautious after the announcement, with selling in longer-dated Treasuries reported as investors weighed risks to the Fed’s independence.
• The dispute also intensifies scrutiny of Chair Jerome Powell’s position, with decisions over Cook’s access to Fed facilities and systems viewed by observers as potential flashpoints in the coming days.