U.S. President Donald Trump has moved to fire Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. This unprecedented action has sparked concerns over the Federal Reserve's independence and caused volatility in financial markets. The U.S. dollar initially weakened against major currencies, dipping by approximately 0.23%, as investors recalibrated expectations about future monetary policy and potential rate cuts. Gold prices rose to a two-week high, nearing record levels, reflecting increased inflation risk concerns. U.S. Treasury yields also rose amid the uncertainty. Despite the initial market turmoil, the dollar later steadied and began recovering, regaining much of the losses incurred since Fed Chair Jerome Powell's recent dovish speech at the Jackson Hole symposium. European and Asian stock markets declined following the announcement but later showed signs of stabilization. The episode underscores investor anxiety about political interference in the Federal Reserve and its implications for U.S. monetary policy going forward.