Overview

• The president posted a letter declaring Cook "hereby removed" effective immediately, citing Article II and the Federal Reserve Act’s "for cause" standard.
• FHFA Director Bill Pulte’s Aug. 15 referral to the Justice Department alleged Cook signed 2021 mortgage documents naming homes in Michigan and Georgia as primary residences weeks apart.
• Cook denies wrongdoing, says the president lacks authority to remove her for cause, and refuses to resign as legal experts anticipate a protracted court fight that could reach the Supreme Court.
• Markets reacted with a steeper Treasury yield curve as two‑year yields fell and 10‑year yields rose, reflecting expectations for earlier rate cuts and concern about Fed independence.
• If courts uphold the ouster, Trump could nominate a replacement and further reshape the seven‑member board, adding to an existing vacancy and intensifying the struggle over central‑bank autonomy.