President Donald Trump’s move to oust Federal Reserve Governor Lisa Cook immediately launched a legal fight and raised concerns about the future of Fed independence.On today’s Big Take Podcast, Bloomberg’s @sarahsholder and @mckonomy break down the controversy surrounding Cook’s potential ouster and its larger implications https://t.co/XqnkYKcAW2 ...

We can't breach fraud in America. And you surely can't have it for your leaders. I mean, imagine anyone in the cabinet who did this.You guys would be calling for their head. This woman should go away if she's committed the mortgage fraud. And those signatures sure as heck look like hers.Irony is >> Mhm. dead. >> Yeah.Dead. like bring the flowers, put it on the grave. I mean, really.>> Yes. And this is this concept of mortgage fraud is what the they have done for Leticia James, the Attorney General of New Yo ...

Legal & Procedural Aspects - Lisa Cook's attorney confirms she will file a lawsuit against the president for attempting to remove her from the Federal Reserve [1][6] - The lawsuit's basis is the lack of due process and factual findings regarding the alleged mortgage fraud [7] - "Cause" for removal generally means malfeasance or dereliction of duties related to the job [3] - It's an unsettled question whether pre-appointment conduct can be grounds for removal after Senate confirmation [4][5] Federal Reserve Independence - The president, not the Fed, has the authority to remove a governor [11] - A president can legitimately conduct an investigation if facts warrant it [12] Lisa Cook's Response - Lisa Cook has not directly addressed the facts of the case [8] - She is challenging the removal in court [9]

The Dow off by 60 points. And welcome back to Money Movers on CNBC. President Trump moving to fire Federal Reserve Governor Lisa Cook.It's his latest threat against Fed independence. Joining us now, former Fed Governor Frederick Mishkin and former acting chairman of the Council of Economic Adviserss Toamas Phillips. Gentlemen, good to see you today.The chief economist for New Century Adviserss, Claudia S, uh sent out a pretty attention getting post on X. She says, if we could pull this, pull this up now. Do ...

We're here to talk about the potential fallout though. Jeffre chief market strategist David Zervos also said to be on the list of possible next Fed officials. Uh David, it's great to have you.Welcome. Um we had a long discussion about the absence at least so far of an actual charge. What should she do.Well, that's a that's a tricky question. I think it's uh it's a complicated time. It's uh unprecedented as you guys have said.Although, as you were just discussing, we've seen um three different cases. And in ...

Well, President Trump says he is firing Fed Governor Lisa Cook over alleged mortgage fraud. Let's get to Steve Leeman with the latest. Hi, Steve.>> Morning, Mike. Yeah, more questions and answers this morning about the independence of the Fed, the power of the president over the central bank, and of course, the more important outlook for monetary policy when it comes to mortgage. The president saying he fired Cook for quote allegedly making false statements on one or more mortgage agreements.Cook in a state ...

Group 1: Federal Reserve Developments - President Trump fired Federal Reserve Governor Lisa Cook amid allegations of mortgage fraud, raising concerns about the Fed's independence under his administration [4][6] - Cook's dismissal could lead to a more dovish majority on the Federal Reserve Board, as Trump would have another opportunity to appoint a member [5] - The dollar experienced a nearly 0.4% drop following the news of Cook's firing, indicating market sensitivity to changes in Fed leadership [6] Group 2: Economic Indicators and Market Reactions - Stock index futures fell slightly, with S&P 500 futures down 0.1%, Nasdaq 100 futures down 0.1%, and Dow futures down 0.2% [3] - The 10-year Treasury yield rose by 2 basis points to 4.3%, while the 2-year yield fell by 2 basis points to 3.71% [4] - Upcoming economic data includes July Durable Goods Orders expected to decrease by 4%, and home prices projected to rise by 2.6% year-over-year in June [8][9] Group 3: Trade and Tariff Threats - President Trump threatened to impose substantial additional tariffs and export restrictions on countries with digital taxes targeting U.S. tech firms [9][10] - Digital services taxes (DSTs) in Europe disproportionately affect American tech giants like Apple, Alphabet, Amazon, and Meta Platforms, while exempting Chinese firms [10] Group 4: Federal Reserve Chair Nomination - Kevin Hassett, a potential nominee to replace Fed Chair Jerome Powell, indicated that Trump is expected to name the next head of the central bank in a few months [11] - Hassett noted that Powell's openness to a rate cut would not influence Trump's decision to extend Powell's term [11]

Market Performance & Economic Outlook - S&P 500 earnings are up 10% year-over-year, and NASDAQ 100 earnings are up 34% year-over-year, indicating strength in the US market [1] - Concerns about Fed independence are causing a slight sell-off at the long end of the curve [2] - The Fed's influence is strongest on the two-year rate, which has decreased by approximately 7-8 basis points [3] Monetary Policy & Interest Rates - The Fed only controls the short-term lending rate, and excessive cuts could lead to a steepening of the yield curve, potentially resulting in higher longer-term interest rates [3] - There is potential for the Fed to implement two or three rate cuts without significantly impacting the long end of the curve, even with inflation around 3% [4] - Lower rates on money markets and challenges in generating income from interest rates and bonds make equity income more attractive [5] Investment Strategy - The ITWO ETF, a Russell 2000 high-income ETF focused on small caps, is highlighted as a pick [4] - Small caps are more leveraged and have shorter maturity, making them more sensitive to and potentially benefiting more from rate cuts compared to large caps [5]

Good morning, Frank. The firing of Fed Governor Lisa Cook does open dramatic questions or create dramatic questions about the legality of the move, the independence of the Fed, and of course, the outlook for monetary policy. The president cited his authority under the Constitution in the Federal Reserve Act of 1913. In stating he had the power to remove Cook for what the president said was quote allegedly making false statements on one or more mortgage agreements. The president said in the letter to Cook, " ...

Market Impact of Potential Fed Turmoil - The market has become conditioned to noise from the administration regarding policy makers [2][3] - The market may initially take potential Fed turmoil in stride, viewing it as a continuation of a dovish Fed policy and anticipating future rate cuts [3][4] - Equity market is expected to react positively to potential aggressive rate cut strategy, craving more stimulus [6] - Bond market is expected to become more stressed, with risk premium potentially creeping higher [7][8] Potential Risks and Concerns - S&P Global warned that the US credit rating could come under pressure if political developments weigh on the strength of American institutions [9] - Turmoil alone is not expected to drive a downgrade, but a more pervasive approach could be a contributing factor [11] - Deficits, debt levels, and the steepening yield curve are greater concerns than the potential Fed turmoil [12] Investment Strategies - Technology sector is considered a safe trade due to the AI race [13] - Opportunities exist in the industrials and financials sectors [14] - Focus is shifting towards size and earning stability in the back half of the year due to increasing volatility [15]