Overview

• Trump published a letter directing Cook's ouster with immediate effect, an extraordinary step not seen in more than a century.
• The allegations were raised by FHFA director Bill Pulte, and reporting says the Justice Department has opened a preliminary inquiry, though no charges exist.
• Cook and her lawyers say the action violates the Federal Reserve Act, assert she will not resign, and vow to contest the move in court.
• Legal analysts note governors can be removed only for cause, a standard left undefined in statute, creating a likely test case over the scope of removal power.
• The Federal Reserve has declined comment, leaving uncertainty over board continuity and the central bank's mid-September policy meeting.