Overview

• Trump posted a letter on Truth Social announcing Cook’s immediate removal, citing alleged mortgage irregularities raised by FHFA director Bill Pulte.
• The Justice Department is preparing an investigation into the mortgage claims, though no charges have been announced.
• Cook, represented by attorney Abbe Lowell, said she will not resign and argues the president lacks authority to dismiss a Fed governor.
• Legal experts say the move tests limits on presidential power to remove Fed governors, a protection intended to safeguard monetary policy from political influence.
• Analysts warn the attempt could unsettle markets, weaken the dollar if investors fear eroding Fed independence, and shift the board’s balance if a Trump-aligned replacement wins Senate confirmation.