“Resign? No.” Cook shot back at Trump with one sentence.
Netizen @WallStreetPasserby: The president wants to fire the Federal Reserve governor, but he needs to first find solid evidence of 'malfeasance'; merely criticizing trade policy won't help.
Netizen @DetroitHomeowner: In the Michigan mortgage case, she has already been classified by state regulators as having a documentation flaw, which is far from a criminal charge.
Netizen @TokyoTrader: The market fears the Federal Reserve changing personnel the most; the overnight dollar swap implied volatility has jumped by 20 points.
Upon reviewing records, no president has successfully removed a governor since 1935, unless they went to jail.
During Cook's 2018 hearing, he publicly stated that 'tariffs raise inflation,' planting the seeds of conflict.
Now Trump is using the mortgage issue to make a point; the consensus in legal circles is that the evidence chain is too thin, and the court is likely to dismiss it.
Traders are closely watching: if this really goes to court, the probability of a rate hike at the December FOMC could drop from 46% to 20%, and U.S. Treasury yields could fall another 10 basis points.