The Trump administration has moved to remove Federal Reserve Governor Lisa Cook over alleged misstatements in a 2021 mortgage application. The White House has set an Aug. 26 deadline for her response and is considering her dismissal. National Economic Council Director Kevin Hassett dismissed speculation that he would replace Cook, saying "that's not going to happen." He also offered a personal view on policy: if he were a Fed official, strong supply-side dynamics and cooling inflation would lead him to hold or cut rates at the September meeting. Cook and her lawyers deny all allegations as baseless, warning that a presidential effort to unseat a Fed board member could erode central bank independence. In June, the Supreme Court temporarily blocked the removal, ruling that Cook had not received adequate notice and a hearing. A successful ouster would give Trump a new Fed board nomination, potentially shifting the course of monetary policy.
On Monday, Aug. 10, Kevin Hassett, director of the U.S. National Economic Council, responded to the controversy over the attempted removal of Federal Reserve Governor Lisa Cook. Hassett called the matter "an enforcement issue" and declined to comment on the specifics of the allegations. When asked about speculation that he might replace Cook on the Fed board, Hassett was blunt: "No, I assure you, that's not going to happen."
On monetary policy, Hassett said that if he were currently a Fed official, he would hold rates steady or cut them at the September meeting, citing strong supply-side momentum and a recent pullback in inflation data.
The Trump administration has initiated proceedings to remove Cook, alleging misstatements on a housing disclosure in a 2021 mortgage application. The White House has given Cook until Aug. 26 to respond to the charges and is weighing her removal. Cook and her lawyers deny all allegations, calling them "baseless," and warn that Trump's effort to oust a Fed governor could undermine the central bank's independence.
In June, the Supreme Court ruled that Cook could remain in her position for now, finding that the earlier removal process had not given her adequate notice and an opportunity to be heard. If Cook is ultimately removed, Trump would get the chance to nominate a new Fed governor, potentially reshaping monetary policy direction down the road.
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