Trump-Cook Firing Showdown and the Fed, Lutnick on Defense Stakes, AT&T-EchoStar $23B Spectrum deal 8/26/25

SPEAKER_1 (0:00)

Fidelity Trading Dashboard brings live data, news and charts into one screen. Because better trading starts with finding what you need fast. Available for free at fidelity.com/tradingdashboard. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE, SIPC.

SPEAKER_2 (0:17)

Huge savings on Dell AI PCs with Intel Core Ultra processors are here, and they are newly designed to help you do more faster. They can generate code, edit images, multitask without lag, draft emails, summarize documents, create live translations, and even extend your battery life. That's the power of Dell AI with Intel inside. Upgrade today by visiting dell.com/aidashpc.

Jim Cramer (0:46)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:54)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures red, mostly steady, as more eyes may be on the dollar today in the long bond. Yield rising to 492 as the president moves to fire Fed Governor Cook and her statement that, quote, he has no authority to do so. A roadmap begins with the president saying he is firing her for allegations of mortgage fraud. Cook says she will not resign.

David Faber (1:18)

Plus AT&T strikes a $23 billion deal to buy Spectrum licenses from EchoStar. It's an effort to boost its 5G network and it sure as heck is boosting the stock of EchoStar. Commerce Secretary Howard Lutnick was on CNBC this morning saying the Pentagon is, quote, thinking about taking equity stakes in defense contractors. We'll talk about that and the continued fallout, so to speak, from the Intel investment.

Carl Quintanilla (1:46)

Let's begin with the White House ramping up its attacks on the Fed today. The president says he has fired Fed Governor Lisa Cook. Effective immediately, in a letter to Cook posted last night on Truth Social, the president states there is sufficient cause to remove her because she is, in his words, may have made statements on one or more mortgage agreements. Cook responded with a statement saying, quote, President Trump purported to fire me for cause when no cause exists under the law, and he has no authority to do so. I will not resign. I will continue to carry out my duties to help the American economy as I've been doing since 2022

A lot of reaction, Jim, on the street about whether she could get an injunction from the DC. District Court, whether that eventually moves to the Supreme Court.

Jim Cramer (2:28)

Well, I think the hard problem here is she hasn't been charged. So until she's charged, I don't know why the president would go now, unless he's really confident she will be charged, and I don't think he knows that. You know, David, I think one of the problems here is that without her being charged, it's really difficult to fire her, because you're just basically saying, I said she may have committed fraud, I'm firing her. Had she committed fraud, I think that the expectation would be, even if she committed fraud before being appointed, it's very hard to serve the Federal Reserve if you're under indictment. It just is. Right.

David Faber (3:04)

But in this case, the president, I guess, is judge and jury?

Jim Cramer (3:08)

Well, yeah. I mean, let's take her out of the equation. If you haven't been charged, then how would you ever be considered someone who shouldn't be?

David Faber (3:20)

We have no idea if, in fact, she's guilty of this charge. There's no due process.

Jim Cramer (3:26)

There's no charge.

David Faber (3:27)

No, there's nothing.

Jim Cramer (3:28)

No, there's no due process.

David Faber (3:29)

I mean, the charge is being made by the president and by others. There's been a referral, a criminal referral, but we have no idea if it's been undertaken as yet, correct, Carl, in terms of the Justice Department deciding to prosecute, which then she would obviously have the opportunity, I would believe, to defend herself, and then we might, a court might determine and a judge might determine whether she is in fact guilty.

Jim Cramer (3:51)

Right.

David Faber (3:52)

Now, typically, by the way, mortgage fraud is litigated when it's large. You know, when you're talking millions and millions of dollars at stake or billions, who knows, billions, those kinds of things.

Carl Quintanilla (4:03)

Say when you're inflating the value of your assets.

David Faber (4:05)

Or sometimes that, or not typically when you are on a forum saying that you have two primary residences, which is what is charged.

Jim Cramer (4:14)