U.S. President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook, if upheld by the courts, will dent the Fed's credibility but will alone not compromise its independence, though continued White House pressure could still fuel market volatility. In a late-evening social media post on Aug. 25, U.S. President Donald Trump announced his decision to fire Cook ''effective immediately'' over alleged mortgage fraud, escalating his dispute with the U.S. central bank over its failure to pursue rapid monetary easing in response to a weakening labor market. Cook denied the allegations and expressed her intention to remain at her post, and is now seeking an injunction. U.S. financial markets' reaction to the news has so far been relatively muted, but if Cook's dismissal is upheld by the courts, it could worsen volatility by weakening the Fed's credibility....
