Kevin Hassett Says Lisa Cook Should Take Leave From Fed Amid Legal Fight

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Washington, D.C. – White House economic adviser Kevin Hassett has said that Federal Reserve Governor Lisa Cook should step aside and take a leave of absence while her legal battle over dismissal continues. His remarks come amid heightened tensions over central bank independence and the authority of the presidency.

The controversy began when former President Donald Trump announced the firing of Lisa Cook, citing his powers under Article II of the Constitution. Cook, however, refused to resign, stating that her role at the Federal Reserve is protected from political removal and that she intends to continue serving her term.

Kevin Hassett, who served as Chairman of the Council of Economic Advisers under Trump, suggested that Cook’s continued presence on the Fed board during the legal challenge could create unnecessary complications. “The best step for institutional credibility would be for her to take leave until the courts provide clarity,” Hassett said.

Fed Independence at Stake

The dispute has drawn national attention because it touches on the independence of the Federal Reserve. Governors are traditionally appointed for fixed terms to shield them from political pressure, ensuring that monetary policy decisions remain separate from partisan politics. The ongoing conflict between Trump and Cook highlights the tension between presidential powers and institutional safeguards.

The case is expected to move through the courts, where judges will decide whether the president has the authority to dismiss a sitting Federal Reserve governor. Legal experts argue that the decision will have long-term consequences for how independent agencies function within the U.S. system of checks and balances.

Hassett’s call for Cook to step aside underscores the seriousness of the dispute. While Cook has vowed to continue her work at the Fed, the broader debate now centers on protecting the credibility of financial institutions while clarifying the limits of presidential power.