Overview

• Trump posted a signed letter ordering Cook’s immediate dismissal, the first presidential attempt to oust a Federal Reserve governor in the institution’s history.
• The move rests on an FHFA referral by director Bill Pulte alleging Cook claimed two primary residences to secure better mortgage terms; the Justice Department has not announced charges.
• Cook and her lawyer say the president lacks authority to remove her for cause and vow to contest the action in court rather than resign.
• Senate Democrats voiced support for Cook, and Senator Elizabeth Warren called the removal an authoritarian overreach that she says should be overturned by a court.
• Legal ambiguity over the Federal Reserve Act’s “good cause” standard points to litigation in which Cook could remain in her role during the case, with the Fed declining public comment and the next policy meeting scheduled for September 16–17.