Overview

• Trump cited alleged false statements on mortgage applications, pointing to claims raised by FHFA chief Bill Pulte that the Justice Department is reviewing, though no public evidence has been presented.
• Cook rejected the order, asserted there is no legal basis for her dismissal, said she will continue performing her duties, and signaled plans to challenge the action in court.
• U.S. law and recent Supreme Court guidance allow removal of Fed governors only for cause tied to serious misconduct, casting doubt on the order’s validity.
• Financial markets reflected concern, with a weaker dollar and declines in Asian and European stocks as investors questioned the Fed’s independence and the policy outlook.
• The move escalates Trump’s campaign to reshape Fed leadership; Cook, appointed in 2022 with a term through 2038, is the first Black woman on the Board, and CNN reported no president has previously removed a Fed governor.