Hassett Says He Won't Replace Cook as Fed Governor, Favors Hold or Rate Cut

White House economic adviser Kevin Hassett said he would not replace Federal Reserve Governor Lisa Cook if she is removed from her post over the allegations against her. Hassett described the accusations as a matter for law enforcement agencies and said he hopes Cook is innocent. Cook herself has been challenging the Trump administration's attempt to dismiss her from the Federal Reserve board. In separate comments on monetary policy, Hassett said that if he were involved in the decision-making process, he would favor keeping interest rates at current levels or cutting them. He said U.S. inflation is easing while supply-side growth momentum remains strong, which he believes gives room for a more accommodative policy environment. The remarks, as reported by ChainCatcher, touch on both a potential vacancy on the Fed board and the possible direction of American rate policy. On the allegations, Hassett said they belong to law enforcement authorities.