U.S. President Donald Trump has removed Federal Reserve Governor Lisa Cook, citing allegations related to mortgage fraud. This unprecedented move has raised concerns about the independence of the Federal Reserve and has unsettled financial markets. Following the announcement, the U.S. dollar declined against major currencies, while U.S. Treasury yields rose amid increased uncertainty over future monetary policy. Gold prices climbed to a two-week high as investors sought safe-haven assets amid the turmoil. The market reaction included a dip in stocks and a recalibration of expectations for Federal Reserve rate cuts, with traders now pricing in an 84% chance of a rate cut in September. Despite initial volatility, the dollar steadied somewhat later but remained on the defensive as investor trust in the Fed's autonomy faltered. The developments have intensified scrutiny over the central bank's future direction and its ability to maintain policy independence amid political pressures.