National Economic Council Director Kevin Hassett has urged Fed Governor Lisa Cook to temporarily step away from her role after President Trump fired her over claims of mortgage fraud.
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“If it were me and I had made the mistakes of the accused, I would either deny it because it was not true, or I would go on leave until people resolve that,” Hassett said on Wednesday. He added that Cook failing to deny the accusations “suggests that she’s being partisan, taking a partisan stance, which is contrary to the evidence.”
Cook Seeks to Keep Position amid Trump Pressure
In the meantime, the Fed will allow Cook to keep her position and will wait for concrete legal action before making a decision. Cook has stated that she won’t resign, arguing that Trump has no legal grounds and cause to fire her. Her lawyer, Abbe Lowell, will likely file a lawsuit in D.C. Federal court to allow her to remain as a Fed official.
Critics of Trump’s decision have accused him of overstepping his boundaries and further threatening the Fed’s independence. Trump has called for rate cuts several times this year while berating Fed Chair Jerome Powell.
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