Trump orders White House probe into Fed Governor Cook over mortgage fraud allegations

A formal clearing or exoneration of Cook, or Trump's withdrawal of the probe, would likely reinforce confidence in Fed institutional independence and reduce near-term political risk premia embedded in rate-sensitive assets.

If the investigation proceeds without material outcome or Cook remains in post despite political pressure, markets would plausibly treat this as political theater with limited institutional consequence, leaving Fed policy expectations and governance perceptions largely unchanged from current levels.

Escalation toward Cook's removal, forced resignation, or broader institutional pressure on the Fed's decision-making would put downward pressure on confidence in central bank independence and could shift expectations around future policy autonomy and personnel stability.