US President Trump says he will fire Fed's Cook if she does not resign

Analysis details (15:18)

• FHFA Director Pulte accused Governor Cook of committing mortgage fraud and asked US AG Bondi to investigate the matter. This saw US President Trump call on Cook to resign, with source reports suggesting he would fire her if she did not resign.


• If Cook were to exit the board, this would give Trump another vacant board seat to fill. This would further diminish Fed independence with close Trump allies being appointed to the board, and make the board composition more dovish.


• There is a scenario where Trump could appoint three new governors: the Kugler/Miran replacement, the replacement if Fed Chair Powell steps down once his term as chair ends, and now the Cook replacement if she were to exit.

Note:

• Fed Governor Cook said she learned from the media that FHFA Director Pulte posted he was making a criminal referral based on a mortgage application from four years ago, before she joined the Fed, while she has no intention of being bullied to step down from her position because of some questions raised in a tweet. Furthermore, she intends to take any questions about her financial history seriously as a member of the Federal Reserve and is gathering accurate information to answer any legitimate questions and provide the facts.

22 Aug 2025 - 15:16- ForexImportant- Source: Newswires