Trump's chief economic advisor: Federal Reserve Governor Cook should take a leave of absence during the challenge to his removal decision

The tension between U.S. President Trump and the Federal Reserve has escalated further.

According to the Zhitong Finance APP, Trump's chief economic advisor Kevin Hassett stated on Wednesday that Federal Reserve Governor Cook should choose to take a temporary leave while challenging Trump's dismissal decision.

Hassett told reporters outside the White House, "If I were her, I would choose to take a leave in this situation. I think that is the honorable thing to do."

He also defended Trump's dismissal power, emphasizing that the president has the authority to remove a Federal Reserve governor "for cause," which is a legal prerequisite.

Cook is the first African American woman to serve as a Federal Reserve governor. Her lawyer, Abbe Lowell, stated on Tuesday that Cook would soon file a lawsuit against Trump's decision. Lowell noted in a statement, "Trump is attempting to dismiss her based solely on a forwarded letter, which lacks any factual or legal basis."

The Federal Reserve issued a statement on Tuesday saying, "Cook has indicated through her personal 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 Federal Reserve governor confirmed by the Senate."

Market observers expect that this case may ultimately be decided by the U.S. Supreme Court, becoming a landmark event to test the boundaries of presidential power and the independence of the Federal Reserve