Cook's lawyer wants answers from White House before Fed hearing

what happened

According to a representative of Lisa Cook's legal team, cited by Reuters, the Fed governor's attorney has requested that the White House clear up worries about fairness and procedure before she agrees to take part in a hearing. Trump wants the session to examine whether he should dismiss her. Cook denies mortgage fraud allegations, which she says are a cover for removing her over her rate decisions.

The Supreme Court ruled in June that Trump cannot dismiss a Fed governor without cause, though he may be able to if she gets a chance to respond. Kevin Hassett, Trump's top economic adviser, said the hearing, first set for November 5, serves that purpose. A White House official told Reuters the date moved to December 14. Her side wants clarity on the impartiality of the panel, disclosure of any evidence, and the roles of other participants. Abbe Lowell had earlier questioned whether the inquiry, led by Hassett and two other Trump appointees, could be impartial.

why it matters

The dispute tests how far the White House can go in removing Fed officials. Investors watch it closely because the central bank's independence shapes expectations for interest rates, Treasuries and the dollar.

market impact

Dollar and US Treasuries: the fight over Fed independence adds uncertainty to monetary policy expectations.

• ↔US Treasuries mixed — uncertainty over Fed independence adds to rate expectations
• ↔the dollar mixed — doubts about central bank independence could weigh on confidence in US policy

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