Overview

• Trump announced he was removing Cook citing mortgage-fraud allegations raised by FHFA Director Bill Pulte, which the Justice Department is reviewing; no charges have been filed.
• Cook rejected the action, retained attorney Abbe Lowell, and plans to sue, with an expected request for a preliminary injunction that could determine whether she can participate in upcoming Fed policymaking.
• The Federal Reserve said it would abide by any court ruling and highlighted that governors serve fixed terms and may be removed only “for cause,” underscoring statutory protections for the board.
• The White House defended the move as lawful and urged Cook to take leave, while Trump said he expects to soon have a majority of appointees on the seven-member board if he fills the seat.
• Legal analysts anticipate expedited litigation that could reach the Supreme Court, and former Fed Chair Janet Yellen called the attempt unlawful and dangerous for central bank independence.