On Wednesday, Kevin Hassett, President Donald Trump's top economic adviser, publicly suggested that Lisa Cook, a member of the Federal Reserve Board of Governors, should consider taking a leave of absence. This recommendation comes as Cook prepares to file a lawsuit challenging her removal from the central bank by President Trump.
Speaking to reporters outside the White House, Hassett stated, "If I were her in her circumstance, I would take leave. I think it's the honorable thing to do." His comments follow inquiries about whether Cook should be allowed the presumption of innocence regarding allegations of mortgage fraud that have been raised by another official appointed by Trump.
In his remarks, Hassett also defended Trump's authority to remove a Federal Reserve governor for cause, which is a necessary condition for a president to dismiss a board member at the central bank. This assertion underscores the ongoing debate surrounding the president's power over Federal Reserve appointments and removals.
Lisa Cook, who made history as the first Black woman to serve on the Federal Reserve Board, is expected to take legal action against Trump's decision. Her attorney, Abbe Lowell, indicated on Tuesday that they are preparing to file a lawsuit. Lowell stated, "Trump's attempt to fire her, based solely on a referral letter, lacks any factual or legal basis." This statement emphasizes the legal complexities involved in Cook's case.
The Federal Reserve confirmed on Tuesday that Cook has indicated through her personal attorney her intention to challenge this action in court. She aims to secure a judicial ruling that will affirm her right to continue fulfilling her duties as a Senate-confirmed member of the Board of Governors of the Federal Reserve System.
The ongoing conflict regarding Lisa Cook's removal could potentially escalate to the Supreme Court, where a final decision may be rendered on the matter. As this legal battle unfolds, the implications for Federal Reserve governance and presidential authority will be closely scrutinized.
