White House Adviser Suggests Fed Governor Lisa Cook Take Leave Amid Legal Dispute

White House National Economic Adviser Kevin Hassett has suggested that Federal Reserve Board Governor Lisa Cook should consider taking a leave of absence amid ongoing legal proceedings concerning her dismissal by President Donald Trump. Hassett stated, "If I were her in her circumstance, I would take leave," adding, "I think it's the honorable thing to do."

President Trump announced Cook's removal, citing allegations of mortgage fraud. Cook, the first Black woman to serve as a Fed governor, plans to file a lawsuit challenging this action. Her attorney, Abbe Lowell, asserted that the president lacks the authority to remove her, stating, "President Trump has no authority to remove Federal Reserve Governor Lisa Cook."

The Federal Reserve has acknowledged Cook's intention to seek a judicial ruling to confirm her right to remain in her position. The central bank emphasized that governors serve fixed terms and can only be removed by the president "for cause," as stipulated by the Federal Reserve Act.

This situation has raised concerns about the independence of the Federal Reserve and the potential for political interference in monetary policy. The outcome of Cook's legal challenge could have significant implications for the governance of the central bank.