White House economic advisor Hassett pressures Federal Reserve Governor Cook to take a leave of absence during the lawsuit
Kevin Hassett, a senior economic advisor in the Trump administration, stated that if he were in Tim Cook's position, he would choose to take a vacation, calling it a "decent thing to do." He pointed out that the law allows the president to dismiss Federal Reserve governors "for good cause."
Senior economic advisor to the Trump administration, Kevin Hassett, stated that Federal Reserve Board member Lisa Cook should take a leave of absence while her legal status is in question.
On Wednesday, Hassett reportedly said outside the White House, "If I were in Cook's position, I would choose to take a leave, and that would be the 'decent thing to do'." He pointed out that the law allows the president to dismiss a Federal Reserve board member "for good cause":
The president absolutely has the authority to fire a Federal Reserve board member for "good cause," and I believe the allegations are serious.
It is worth noting that Hassett was publicly considered by Trump for nomination as the next Federal Reserve chairman.
Wallstreetcn previously mentioned that President Trump accused Cook on social media on Monday of "immediately" firing the Federal Reserve board member on the grounds of alleged mortgage fraud.
As the first Black woman to serve on the Federal Reserve Board, Cook has denied all allegations through her attorney. Her lawyer, Abbe Lowell, stated in a release:
Trump is attempting to fire her based solely on a whistleblower letter, which lacks basis both factually and legally.
The Federal Reserve itself is currently remaining neutral on the matter, stating it will abide by the court's final ruling. The Federal Reserve said in a statement on Tuesday:
Cook has indicated through her private attorney that she will immediately challenge this action in court and seek a judicial ruling to confirm her ability to continue fulfilling her duties as a Senate-confirmed member of the Federal Reserve Board.
The Federal Reserve stated that it will follow the judicial process's ruling during this period. This legal battle over the security of Federal Reserve board members' terms may ultimately escalate to the U.S. Supreme Court, and its ruling could have profound implications for the independence of the Federal Reserve
