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Markets won't care if Trump fires Fed Governor Cook, DOJ tells Supreme Court

1. DOJ argues Trump's firing of Cook won't harm markets. 2. Sauer stresses independence of Fed policies despite Cook's potential dismissal. 3. Lower-court rulings currently prevent Cook's firing. 4. Firing for financial misconduct might not disrupt financial stability.

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FAQ

Why Neutral?

Concerns over Fed leadership can create uncertainty; historically, leadership changes cause temporary volatility.

How important is it?

Reactionary impacts on S&P 500 due to leadership changes, though stabilizing over time.

Why Short Term?

Market reactions to news of Fed member changes are typically immediate but stabilize quickly.

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