White House Adviser Hassett Says He Won't Replace Fed Governor Cook, Leans Toward Holding or Cutting Rates

Kevin Hassett, the White House economic adviser, said on Aug. 10 that he would not succeed Federal Reserve Governor Lisa Cook if Cook is dismissed from the board over the accusations she faces. The allegations against Cook are a matter for law enforcement authorities to handle, Hassett said, adding that he hopes Cook is innocent. Those comments came as Cook is challenging the Trump administration's push to strip her of her position on the Federal Reserve board, a move she is contesting. Turning to monetary policy, Hassett said that if he were the one deciding, he would lean toward holding the current level of interest rates or cutting them. His reasoning is that inflation in the United States has been easing and that supply-side growth momentum remains strong, which he believes provides space for a more accommodative policy stance. The remarks cover both Cook's future at the central bank and the direction of borrowing costs, and they were delivered while her legal fight with the administration continues. BlockBeats reported the comments.