Overview

• The White House ordered Cook’s immediate removal, citing alleged false statements on mortgage applications flagged by FHFA chief Bill Pulte, though no public evidence has been presented.
• Cook rejected calls to resign last week and said she is assembling information to address the claims; her term was set to run through 2038 as the first Black woman on the Fed’s Board.
• Legal experts note a recent Supreme Court interpretation requires demonstrable serious misconduct to remove an independent regulator, making the dismissal likely to face a court challenge.
• Financial markets reacted with unease as the dollar weakened and analysts warned the move undermines confidence in the Fed’s independence.
• The step follows months of presidential pressure for rate cuts; Chair Jerome Powell signaled openness to a near‑term cut at Jackson Hole, and any replacement for vacant Fed seats would require Senate confirmation.