Shares in stock markets around the globe were sinking Tuesday after President Donald Trump announced he’s firing Federal Reserve Governor Lisa Cook, an unprecedented move that would constitute a sharp escalation in his battle to exert greater control over what has long been considered an institution independent from day-to-day politics.

But Cook said she’s not leaving: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement. “I will not resign.”

Trump said in a letter posted on his Truth Social platform that he is removing Cook effective immediately because of allegations that she committed mortgage fraud. Market reaction was swiftly negative — economists have long preferred independent central banks because they can more easily take unpopular steps to fight inflation and ensure the economic stability that is key to business confidence.

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World shares sink after Trump escalates central bank feud

Following Trump’s Monday night announcement that he would be firing Cook, Germany’s DAX lost 0.5% to 24,148.16, while the CAC 40 in Paris slumped 1.6% to 7,716.55. Britain’s FTSE 100 gave up 0.6% to 9,269.40. The futures for the S&P 500 and the Dow Jones Industrial Average were 0.1% lower. In Asian trading, most benchmarks declined.

Democrats demand Trump resume a major offshore wind project

A nearly complete wind farm off the coast of Rhode Island and Connecticut faces an uncertain future after the Trump administration abruptly halted construction. The states’ Democratic governors, lawmakers and union workers called Monday for the president to reverse course.

Judge rules Utah’s congressional map must be redrawn for the 2026 elections

The Utah Legislature will need to rapidly redraw the state’s congressional boundaries after a judge ruled Monday that the Republican-controlled body circumvented safeguards put in place by voters to ensure districts aren’t drawn to favor any party.

What to know about cashless bail after Trump’s executive order

Trump’s executive order Monday threatens to withhold or revoke federal funding to local and state governments that offer cashless bail, arguing that it is a threat to public safety.

“No cash. Come back in a couple of months, we’ll give you a trial. You never see the person again,” he said, moments before signing the order.

The order directs Attorney General Pam Bondi to submit a list of jurisdictions that have “substantially eliminated cash bail as a potential condition of pretrial release from custody for crimes that pose a clear threat to public safety and order” within 30 days.

Opponents of cash bail describe it as a penalty on poverty. They say the wealthy can pay their way out of jail to await trial while those with fewer financial resources have to sit it out behind bars. Supporters have argued that bail is a time-honored way to ensure defendants who are released from jail show up for court proceedings. And they warn that violent criminals can commit other crimes while released pending trial.

▶ Read more about cashless bail and what to know about the executive order

Trump moves to ban flag burning despite Supreme Court ruling that Constitution allows it

Trump Monday signed an executive order requiring the Justice Department to investigate and prosecute people for burning the American flag, an activity that the U.S. Supreme Court has ruled is legitimate political expression protected by the U.S. Constitution.

The order the Republican president signed in the Oval Office acknowledged the court’s 5-4 ruling in a case from Texas in 1989, but said there is still room to prosecute flag burning if it “is likely to incite imminent lawless action” or amounts to “fighting words.”

“You burn a flag, you get one year in jail. You don’t get 10 years, you don’t get one month,” Trump said. “You get one year in jail, and it goes on your record, and you will see flag burning stopping immediately.”

The order also called for Attorney General Pam Bondi to pursue litigation to challenge the 1989 ruling, aiming to return the issue to the Supreme Court, which today is much more conservative than the makeup of the court in 1989 and includes three judges Trump appointed.

▶ Read more about the executive order

Why the Federal Reserve has historically been independent of the White House

The Fed wields extensive power over the U.S. economy. By cutting the short-term interest rate it controls — which it typically does when the economy falters — the Fed can make borrowing cheaper and encourage more spending, accelerating growth and hiring. When it raises the rate — which it does to cool the economy and combat inflation — it can weaken the economy and cause job losses.

Economists have long preferred independent central banks because they can more easily take unpopular steps to fight inflation, such as raise interest rates, which makes borrowing to buy a home, car, or appliance more expensive.

The importance of an independent Fed was cemented for most economists after the extended inflation spike of the 1970s and early 1980s. Former Fed Chair Arthur Burns has been widely blamed for allowing the painful inflation of that era to accelerate by succumbing to pressure from President Richard Nixon to keep rates low heading into the 1972 election. Nixon feared higher rates would cost him the election, which he won in a landslide.

▶ Read more about the relationship between the Fed and the White House