Squawk on the Street Cook vs. Trump Heads to Court, Inflation and The Fed, August's Bull Run 8/29/25
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Aug 29, 2025 Eamon Javers, a CNBC correspondent based in Washington D.C., unpacks the gripping legal battle between Fed Governor Lisa Cook and President Trump. They delve into allegations surrounding Cook that could shape the future of the Federal Reserve. The conversation also navigates the economic ramifications of the Fed's preferred inflation measures, a bullish August in stock markets, and the notable movements from companies like Alibaba and Nvidia. Javers shares insights on market reactions to fiscal policies and insider trading trends.
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Court Fight Over Fed Governor's Removal
- Lisa Cook seeks a temporary injunction to stop President Trump's removal while her lawsuit proceeds.
- The Fed declined to take a position and asked for a speedy resolution.
DOJ Frames Removal As Broad Presidential Authority
- The DOJ argues the president has broad discretion under the statute to fire Fed governors for cause.
- DOJ also contends Cook didn't respond to allegations and thus is unlikely to prevail.
Treat Today's Hearing As The Key Legal Signal
- Watch whether a restraining order is issued because it determines Cook's access to the Fed and data.
- Treat today's hearing outcome as the key signal for the legal timeline and potential appeals.