A storm unprecedented in American politics has recently erupted. Late at night on August 26, a shocking announcement was made: the President of the United States ordered the immediate removal of Federal Reserve Board of Governors member Lisa Cook, citing allegations of 'mortgage fraud.' This decision not only sets a historical precedent in the United States but also poses a significant challenge to the long-standing independence of the Fed.

According to reports, Cook is accused of falsely declaring two properties in different states as 'primary residences' in a short period when applying for mortgage loans on them in 2021. The President invoked the 'for good cause' provision in the Federal Reserve Act to implement this removal decision.

In the face of such sudden accusations, Cook has shown a firm stance. In her statement, she said, 'I will never resign under threat,' and emphasized that the accusations occurred before she joined the Fed, while also stating that she has begun to gather evidence to prove her innocence. As the first Black woman on the Federal Reserve Board of Governors, Cook's strong response has quickly escalated this incident into a power struggle between the executive branch and the central bank.

The impact of this event goes far beyond the individual level. From the perspective of economic policy, Cook has been one of the few members of the Federal Reserve Board of Governors who supports 'cautious rate cuts.' If the president successfully appoints a new board member, it could accelerate the rate-cutting process, which may have a favorable effect on certain financial assets.

However, this event has also raised concerns in the market about the potential tightening of the regulatory environment. Some analysts believe that the government may increase scrutiny of various financial activities, which could impact multiple sectors, including emerging financial technology.

If Cook chooses to fight through legal means, the personnel issues at the Federal Reserve Board of Governors may fall into a state of long-term uncertainty, which will undoubtedly affect the decision-making of the upcoming September FOMC meeting.

This major conflict involving politics and finance not only concerns the personal fate of a senior official but may also reshape global capital flows. For the entire financial market, this policy uncertainty brings both opportunities and risks. Market participants need to closely monitor developments to adjust their strategies in a timely manner.