Overview

• President Donald Trump posted a letter asserting authority under Article II and the Federal Reserve Act to remove Cook effective immediately, citing alleged false statements on 2021 mortgage documents.
• Lisa Cook said she will not resign and has retained attorney Abbe Lowell, arguing the president lacks legal authority to fire a Federal Reserve governor for cause in this case.
• The allegations were flagged by FHFA Director Bill Pulte, who referred the matter to the Justice Department after claiming Cook designated two properties as primary residences to obtain favorable loan terms.
• Legal scholars say the action is unprecedented, question whether pre-appointment private conduct can constitute cause, and anticipate a protracted court battle over executive power and central bank independence.
• Financial markets shifted after the announcement as 2-year Treasury yields fell and 10-year yields rose, with U.S. stocks and the dollar slipping as investors weighed risks to Fed autonomy and near‑term rate expectations.