Fed Official Sues Over Firing, New Details on Bolton Probe, Newsom's Bizarre Rant: AM Update 8/29

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Good morning, everyone.

I'm Megan Kelly.

It's Friday, August 29th, 2025, and this is your AM update.

To sabotage and undermine the president, that should be enough cause to justify their lawful removal.

The Trump administration facing some high-profile employment challenges this week, as two top officials get fired only to then refuse to leave.

New reporting exposes the basis of the investigation into John Bolton, undermining accusations that President Trump is weaponizing law enforcement against him.

I don't think Donald Trump wants another election.

And Gavin Newsom makes a bizarre prediction about President Trump's intentions with the National Guard.

All that and more coming up in just a moment on your AM update.

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Federal Reserve Board of Governors member Lisa Cook on Thursday officially suing the Trump administration over her firing, hiring attorney Abby Lowell, known for his representation of, among others, Hunter Biden, to represent her.

Cook is battling to retain her 14-year appointment at the Federal Reserve set to expire in 2038.

The president on Monday moving to fire Cook over a criminal referral made earlier this month by the nation's top housing finance regulator, Bill Pultey, alleging she committed mortgage fraud, claiming she listed two separate homes as her primary residence, fraudulently securing more favorable loan rates.

Cook firing back with a lawsuit against the administration, calling her ouster, quote, unprecedented and illegal, arguing, quote, an unsubstantiated allegation about private mortgage applications submitted by Governor Cook prior to her Senate confirmation does not constitute cause for termination.

Notably, she uses that term unsubstantiated, but she does not in her lawsuit nor anywhere publicly since the allegation broke actually deny it.

Her lawyer is now asking for a D.C.

federal judge to declare her firing was unlawful and that she can remain an active member of the Board of Governors.

The first hearing set for 10 a.m.

today before a Biden-appointed judge.

We spoke with Julie Kelly, reporter for Declassified on Substack, about this case.

She says it is the latest example of DC courts bending over backwards to rush anti-Trump lawsuits to the front of the line.

It's pretty amazing to watch how quickly these judges, especially in Washington, D.C., are taking up these lawsuits.

And in many cases, immediately entering temporary restraining orders on behalf of whoever the plaintiff is seeking to be reinstated or not fired or not dismissed.

I mean, they are.

They are moving with great speed.

In fact, so much so that an appellate court judge mocked even the Supreme Court and his other colleagues as this sort of Denny's restaurant atmosphere that whatever these plaintiffs are looking for, immediately seeking relief from whatever the president and his administration are trying to do, immediately, you know, setting these hearings.

Like this is some sort of national emergency.

You set aside real legitimate cases, including criminal cases, so you could take up the latest lawsuit against the president.

It's pretty remarkable to see.

Cook's lawyers now claim the allegations against her were simply a clerical error, that she accidentally mislabeled one of her homes as a primary residence on an application four years ago.

Keep in mind, both applications were made within weeks of one another.

They argue the real reason for her removal is a policy dispute over the Fed's decision to keep interest rates steady in defiance of President Trump's many public pleas to lower them.

As a semi-independent body under the executive branch, the president is not technically allowed to fire employees solely over policy disagreements.

A White House spokesperson responding in a statement to the New York Post: quote: The president determined there was cause to remove a governor who was credibly accused of lying in financial documents from a highly sensitive position overseeing financial institutions.

The removal of a governor for cause improves the Federal Reserve Board's accountability and credibility for both the markets and American people.

Julie Kelly, questioning the very logic of these so-called independent bodies.

This is the whole really point.

What is an independent agency?

There shouldn't be any.

There has to be accountability.

If you can appoint members to boards like the Federal Reserve, then logic follows that they are under the purview and oversight of the president.

So the idea that you just appoint people and then they go willy-nilly and work on their own and do whatever they want, and in many cases, work to sabotage and undermine the president and his administration's agenda.

That should be enough cause to justify their lawful removal.

Kelly noting recent cases over similar terminations involving independent bodies indicate likely success for the Trump administration.

We already have recent examples of the Supreme Court even stepping in and saying the president's dismissal of Hampton Dellinger, who was the Biden-appointed Office of Special Counsel.

And he was removed.

He was fired by the president and personnel director earlier this year.

And he fought that firing under the same basis that

he had to have cause, that they had to have a reason why.

And basically, the higher courts, Supreme Court said, no,

no, you don't.

This is a position under the direct purview of the president.

And so the removal was justified, was lawful.

And he finally had to leave that office.

So there is some recent case history that will support the president.

The Supreme Court also found, however, that the Fed is a uniquely structured quasi-private entity with a distinct historical tradition, which has some doubting that the High Court would do anything to undermine the Fed's independence.

If the Trump administration is successful in ousting Cook, it could lead to a fundamental realignment of how the executive branch works, says Kelly.

And of course, this will apply to a Democratic president.

Once a Democrat is elected again, these terms really should not last longer than, say, two terms of a president.

So in this case, a 14-year staggered term for the members of the Federal Reserve Board.

There is no such thing as independent.

Is this the fourth branch of government then?

All of these independent offices and boards, then we need to address the entire Constitution if that's the case.

There is no such thing as independent bodies of government that have very powerful decision-making authority outside of Congress, outside of the president.

So, yes, this should be part of a complete overhaul and rethinking the idea that any of these powerful boards and offices, commissions, et cetera, should be independent from presidential authority and oversight.

Late last night, Bill Pulte sending a second criminal referral to the DOJ regarding a third Lisa Cook property.

Pulte alleging Cook entered into a 15-year mortgage loan on a condo in Cambridge, Massachusetts, representing it as her second home.

On later government ethics forums Cook allegedly represented the property as an investment property, not a second home.

There's a difference.

Investment properties typically come with higher interest rates than second second homes do, as investment homes are considered more risky by lenders.

Cook also allegedly represented an Atlanta property as her residence, despite evidence it was used as a rental.

A residence would typically result in a lower mortgage rate than a rental property would, and could lead to a lower down payment requirement too.

All of this would potentially be fraud.

if true.

And finally, Cook allegedly declared this year that her property in Ann Arbor, Michigan was her personal residence, despite information indicating it too is being used as a rental.

As of late Thursday, Ms.

Cook had not yet responded to the latest allegations.

Another employment standoff this week at the CDC, Director Susan Monarez refusing to step down despite HHS Secretary RFKJ's request earlier this week.

The New York Times reporting Secretary Kennedy asking Monarez to resign over disagreements in vaccine policy.

When she refused, HHS announced Monarez, quote, is no longer director of the CDC.

Monarez's attorneys, Mark Zade and Abby Lowell again, responding in a statement, quote, when CDC Director Susan Monarez refused to rubber stamp unscientific, reckless directives and fire dedicated health experts, she chose protecting the public over serving a political agenda.

She will not resign.

By Wednesday evening, the White House personnel office formally notified Monarez of her termination.

Yes, you are fired.

Zayd insisting that too was unlawful.

Writing on social media, quote, as a presidential appointee, Senate confirmed officer, only the president himself can fire her.

Press Secretary Caroline Levitt on Thursday indicating the White House is committed to firing this woman.

Her lawyer's statement made it abundantly clear themselves that she was not aligned with the president's mission to make America healthy again.

And the secretary asked her to resign.

She said she would, and then she said she wouldn't.

So the president fired her, which he has every right to do.

A new replacement will be announced by either the president or the secretary very soon.

And the president and secretary Kennedy are committed to restoring trust and transparency and credibility to the CDC.

And last night, the administration announcing a top HHS deputy of RFKJ, Jim O'Neill, has been selected to serve as acting CDC director.

Amid the fallout, four top CDC officials resigning: Chief Medical Officer Dr.

Deborah Howry, Dr.

Jennifer Layden, who oversaw public health data, Dr.

Daniel Jernigan, who oversaw vaccine safety, and Dr.

Dimitri Daskalakis, who ran the center overseeing vaccine recommendations.

This guy is perhaps the most recognizable of the bunch, rising to national attention under the Biden administration as the deputy coordinator of the White House monkeypox response team and posing on the cover of HIV Plus magazine in an unbuttoned shirt all the way down, revealing a leather pentagram harness, just another day in the Biden administration.

The doctor, posting a lengthy resignation letter on X that repeatedly uses the term pregnant people,

touts his LGBTQ credentials, and claims, quote, I have never experienced such radical non-transparency, nor have I seen such unskilled manipulation manipulation of data to achieve a political end rather than the good of the American people.

Okay, he's never experienced such radical non-transparency.

He's never seen such unskilled manipulation of data to achieve a political end?

That is rich coming from a CDC official in power during the COVID pandemic.

This guy signed his letter with his name and his pronouns, he, his, him, which are evident to anyone that has been unfortunate enough to see the aforementioned magazine cover.

Bye.

Coming up, new reporting on the Bolton investigation undermining claims that Trump is using the FBI as a tool of retribution.

And California Governor Gavin Newsom cannot make up his mind about California's crime problem.

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New reporting by the New York Times shining light on the investigation into former Trump national security advisor and current Trump critic John Bolton, who is reportedly in talks to retain, you guessed it, attorney altogether now, Abby Lowell, perhaps the busiest man in Washington, not named Donald Trump or maybe Marco Rubio.

Bolton's home and office raided one week ago by the FBI, many critics quick to say, this is the latest example of President Trump weaponizing the DOJ to retaliate against his political enemies.

A sampling here from MS Now and CNN.

This is chilling.

It really is.

Clearly, this is using the FBI in a way that not only tarnishes the FBI, but it tarnishes our country.

That looks like it's just more revenge and more retribution on his political enemies.

He said he was going to go after all of these individuals, and one by one, he's slowly doing that.

The New York Times, reporting the investigation, quote, began to pick up momentum during the Biden administration when U.S.

intelligence officials collected information that appeared to show Bolton had mishandled classified information.

The U.S.

reportedly gathering info from an adversarial foreign spy agency, including emails with sensitive information that, quote, Mr.

Bolton, while still working in the first Trump administration, appeared to have sent to people close to him on an unclassified system.

The Times forced to admit that while searches on Bolton's property raise questions about retribution, quote, the new details of the case present a a more complex chain of events.

The quote, long-running investigation into Bolton reportedly involves information appearing to come from classified documents he had seen as National Security Advisor.

He allegedly emailed the sensitive information to people close to him as he gathered material for his 2020 memoir, The Room Where It Happened.

Bolton, who served under Trump 1.0 from April 2018 through September 2019, previously denied any wrongdoing in the crafting of his memoir.

Mr.

Bolton is being investigated under the Espionage Act.

No charges have yet been filed.

California Governor Gavin Newsom struggling to decide whether crime is a problem in his state or not.

The governor and likely 2028 Democratic presidential candidate is suing the Trump administration over its federalization of National Guard troops in Los Angeles, arguing the move violates the Posse Comitatus Act, which prohibits the use of the military as domestic law enforcement.

The decision on that suit is pending.

Governor Newsom is one of the most vocal critics of the Trump administration's use of the National Guard in California and in D.C.

Recent reporting indicating the White House is working on plans to potentially broaden the effort across the country, though President Trump says that would be with the cooperation of the respective governors.

In a bizarre politico town hall appearance on Wednesday, Governor Newsom suggesting President Trump's use of the National Guard is far more sinister, that it's actually a pretext to somehow shut down or interfere with the next presidential election.

He will send the National Guard, he will send them all across this country, and he will do so through Election Day.

You have the largest private police force in the world when they're done with this.

All that funding and that big, beautiful betrayal allows more resources for this private police force that increasingly is showing a tendency not to swear an oath to the Constitution, but to the President of the United States.

And he'll be sending them to voting booths and polling places all across this country.

I don't think Donald Trump wants another election.

And you think he's going to run again?

You don't.

Who spends $200 million on a ballroom at their home and then leaves the House?

This is serious, guys.

This is serious.

So the National Guard is being deployed not to fight crime, but as placeholders to somehow keep Trump in office.

Got it.

Except, less than 24 hours after that town hall appearance, Governor Newsom announcing plans to expand crime suppression operation in his state, though without requesting help from the feds.

One reporter questioning the governor on the apparent disconnect in his positions.

Two messages today are kind of contradictory.

On the one hand, you're mocking Trump's deployments and, you know, highlighting the crime rates and threat red states that you say are higher.

And at the same time, we're here because you're surging law enforcement across the state.

So do you believe that crime is a problem in California or not?

Well,

sort of a curious question.

I made the entire point that crime is an issue and we want to tackle it.

And we continue to do more in that space.

And we announced and highlighted some of the expansion.

is not contradictory, respectfully, is that we're doing it in partnership with our local communities.

We did it it in partnership with the Biden administration prior.

We're not talking about the nationalization, the militarization of the guard and militarizing United States cities.

So quite the contrary.

So crime is a problem that needs more resources.

And Trump is providing those resources, but he's not doing it for the right reason, as proven by Gavin Newsom's fever dream.

Or is it more likely the governor's been watching Bill Maher on Friday nights, who said the following one week ago?

I don't know if I was the first one to use the phrase slow-moving coup.

If there was a slow-moving coup, let me just describe some of the steps, and you tell me if I'm being paranoid.

First, create a masked police force.

Normalize snatching people off the street.

Normalize seeing the National Guard and the military have other states start sending their troops.

So you have in the capital a sort of permanent police presence.

So when an election dispute might come up, just hypothetically,

I'm going to pretend for the rest of the duration that the Democrats do have a chance of winning and they might win the next election.

I just don't think they're ever going to take power because this is what's going to happen.

Because I think this coup is going to go off a lot smoother than the last one.

And that'll do it for your AM update.

I'm Megan Kelly.

Join me back here for the Megan Kelly Kelly Show, live on Sirius XM Triumph Channel 111 at Noon East, on youtube.com/slash Megan Kelly, and on all podcast platforms.

KPMG makes the difference by creating value, like developing strategic insights that help drive MA success or embedding AI solutions into your business to sustain competitive advantage.

KPMG drives brighter insights, bolder solutions, better outcomes.

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