Global Shares Sink After Trump Fires Fed Governor Lisa Cook

Global stock markets and long-dated U.S. Treasuries fell sharply after President Donald Trump announced he was firing Federal Reserve Governor Lisa Cook, citing unproven allegations of mortgage fraud. This unprecedented move escalates Trump's ongoing battle to exert greater control over the Federal Reserve, an institution traditionally independent from daily politics, and has raised significant investor concerns about the Fed's autonomy and market stability. Cook has publicly stated she does not intend to step down, signaling a likely prolonged legal dispute that could reach the Supreme Court. The announcement rattled markets worldwide, with major indices in Europe, Asia, and the U.S. all declining, while gold prices rose and the dollar weakened amid renewed trade tariff threats from Trump. Analysts warn that the president’s actions threaten confidence in the global financial system and could undermine expectations of forthcoming Federal Reserve interest rate cuts. Despite the turmoil, some U.S. equity futures later steadied, though uncertainty about Fed policy continues to weigh on investors.