Overview

• The White House says Cook was removed "for cause," citing FHFA Director Bill Pulte’s referral alleging she claimed two homes as primary residences; the DOJ has opened an inquiry and Cook has not been charged.
• Cook, through attorney Abbe Lowell, argues the president lacks authority to fire a Fed governor and is expected to file suit as soon as Wednesday to block the move and preserve her ability to vote.
• The Federal Reserve said it will abide by any court ruling and highlighted governors’ long terms and removal protections as safeguards for policy independence.
• Top White House economist Kevin Hassett urged Cook to take leave, while New York Fed President John Williams emphasized central bank independence and Janet Yellen called the firing attempt unlawful and dangerous.
• If Cook is ultimately replaced, reporting notes Trump could secure a board majority more aligned with his push for lower rates, and legal experts say the unprecedented dispute could reach the Supreme Court.