Trump sets up a committee to probe Fed Governor Lisa Cook and whether to remove her
President Donald Trump launched a committee to investigate Federal Reserve Governor Lisa Cook and decide whether there is cause to remove her from the Fed’s board, the White House said, according to Reuters, CBS News and the PBS NewsHour. The announcement came on a day when Wall Street rose: the S&P 500 gained 0.59 per cent to 7,811.54, the Nasdaq 0.64 per cent to 27,366.17 and the Dow 0.83 per cent to 51,654.95. The 10-year Treasury yield rose to 5.244 per cent. We did not see the legal basis for removal.
Any attempt to remove a Fed governor tests the central bank’s independence, which underpins the value of the US dollar and the price of US debt.
Fed independence affects the Australian dollar and global borrowing costs, including the rates Australian banks pay for funding. AUD/USD ended Friday at 69.9 US cents.
Supporters say a governor accused of misconduct should be examined.
Critics say the move is a pressure tactic aimed at the central bank before the midterms.
Watch whether the committee reports quickly, and whether the Supreme Court or Congress responds.
DailyDrop Australia edition No. 7 · Morning · SUN., OCT. 11, 2026