Krutika Adani
Unprecedented Move
For the first time, a U.S. president has dismissed a sitting Federal Reserve governor, escalating Trump’s clash with the central bank.
Allegations Under Review
Cook faces accusations of falsifying mortgage documents.
The Justice Department has confirmed it will investigate the claims.
Market Reaction
The dollar index slipped, Treasury yields fell, and S&P 500 futures declined, reflecting investor concern over central bank independence.
Impact on the Fed
Cook’s removal opens the door for Trump to reshape the Fed board.
With more vacancies ahead, he could secure a working majority.