Trump’s Bid to Remove Fed Governor Cook Sparks Legal and Market Uncertainty

President Donald Trump's renewed effort to oust Federal Reserve Governor Lisa Cook has ignited a contentious legal battle, coinciding with a pivotal moment for U.S. monetary policy. The administration's appeal to remove Cook—citing alleged misconduct—faces mounting scrutiny as new evidence undermines its claims. A district court injunction has temporarily halted the removal, but the Justice Department insists presidential authority should override judicial intervention.

The controversy casts a shadow over the Fed's independence just as markets anticipate a 25-basis-point rate cut, the first in nearly a year. Investors are weighing the political turbulence against the central bank's next move, with implications for both traditional finance and digital asset markets.