August 27, 2025 – Stock exchanges across the Gulf region wrapped up trading on a mixed note on Wednesday as uncertainty grew over the independence of the U.S. Federal Reserve. The concerns followed reports of U.S. President Donald Trump’s move to dismiss Federal Reserve Governor Lisa Cook.

Trump alleged that Cook was involved in irregularities related to mortgage loan acquisitions, claiming this as grounds for her removal. However, such an action has raised significant debate regarding the limits of presidential authority over the Federal Reserve.

In response, Lisa Cook made it clear that the U.S. President does not hold the power to terminate her role at the central bank. She also firmly stated that she has no plans to step down despite political pressure.

The controversy has injected fresh volatility into global markets, influencing investor sentiment in the Gulf. While some regional bourses managed modest gains, others retreated, reflecting the uncertainty surrounding future U.S. monetary policy and its potential ripple effects on energy-exporting economies in the region.

This development highlights how political actions in Washington can significantly impact investor confidence not just in the United States but across international markets, particularly in the oil-driven Gulf economies.