President Trump said he was removing Fed Governor Lisa Cook over alleged mortgage fraud, a claim she rejected. Legal experts noted the president has little authority over the Fed, raising concerns about central bank independence.

The move unsettled markets, with 10-year yields near 4.3% and futures pricing an 83% chance of a September rate cut. The dollar index slipped below 98.3 as traders focused on upcoming U.S. data and Friday’s PCE report.

Housing data was mixed: July new home sales fell 0.6% to 652,000, with regional declines in the Midwest and South offset by a strong rebound in the West. Median prices edged down to $403,800.

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