President Donald Trump's attempts to remove Federal Reserve Governor Lisa Cook have triggered legal and market uncertainty, intensifying debates over the Fed’s independence. The move has resulted in resignations of senior CDC officials and concerns about political interference in economic policy. Market reactions were mixed, with some investors optimistic about potential rate cuts under a GOP-leaning Fed, while analysts warn about damaging institutional precedent. Legal challenges are anticipated as the issue may reach the Supreme Court, raising substantive questions about presidential authority over the Federal Reserve Board.
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