Overview

• The White House posted a letter on Truth Social asserting Cook’s immediate removal, citing claims she listed two 2021 mortgages as primary residences after an FHFA referral to the Justice Department.
• Cook, through attorney Abbe Lowell, said the president lacks legal authority to remove her and stated she will not resign.
• Legal scholars note the for-cause standard for firing a Federal Reserve governor is largely untested, making a protracted court fight likely.
• Treasury yields steepened as two-year rates fell and longer-dated yields rose, with stocks and the dollar slipping, reflecting shifting rate expectations and concerns about central bank independence.
• If the removal stands, Trump could install a new governor more open to rate cuts, with attention now turning to the Fed’s Sept. 16–17 policy meeting.