President Trump invoked Article II of the Constitution and the Federal Reserve Act of 1913 to tell Fed Governor Cook she was removed, effective immediately. The White House asserts legal authority to fire Cook for cause after the top housing regulator accused her of mortgage fraud and Bill Pulte referred Cook to the Justice Department for potential criminal prosecution. Cook denied intent to be bullied and said she is gathering accurate information to answer legitimate questions. Financial markets reacted nervously with rising long-term Treasury yields, spiking gold, and a dipping dollar. Pulte previously alleged Cook falsified bank documents and property records.
What they're saying: Trump cited Article II of the Constitution and the Federal Reserve Act of 1913 to tell Cook she was "removed" from her position, "effective immediately," according to a letter the White House rapid response team shared on X. The White House says it has legal cover to fire Cook for cause after the top housing regulator accused her of mortgage fraud.
Cook said in a statement last week that she had "no intention of being bullied to step down from my position because of some questions raised in a tweet" and that she was "gathering the accurate information to answer any legitimate questions and provide the facts." Asked by reporters on Friday about the president's threats to fire her, she declined to comment.
By the numbers: Financial markets had an initially nervous reaction to the news, with longer-term U.S. Treasury yields rising, safe-haven gold spiking and the dollar dipping. Between the lines: Pulte, who has been among the most outspoken among Trump officials about the Fed, alleged in a letter earlier this month that she "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraudulent."
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