White House National Economic Council Director Kevin Hassett said President Donald Trump would have the authority to fire Federal Reserve Governor Lisa Cook if cause for her removal is ultimately established, while ruling out the possibility that he could take her place on the central bank’s board.
In an Aug. 10 interview with CNBC, Hassett was asked about the independence of the Federal Reserve in the context of Trump’s renewed effort to remove Cook, who has denied allegations that she made false statements on mortgage documents.
Hassett broadly described the dispute as a “law enforcement matter” that would be resolved through legal due process.
“If you look at the Supreme Court ruling, it said that basically she was given insufficient notice, and so now she’s been given notice,” Hassett said.
“I look forward to seeing what she has to say. She says that she’s 100 percent innocent. You know, as a human being, I hope that’s true.
“But I think that if in the end there is a cause, then of course the president has the right to fire her.”
He said the question of whether such cause exists should be left to law enforcement.
Asked whether he could be tapped for Cook’s seat if Trump ultimately succeeds in removing her, Hassett replied, “I promise you that’s not going to happen.”
Trump Revives Effort to Oust Cook
In a 5–4 decision, the high court said Cook was entitled to notice and “some opportunity to respond” before being terminated.
Chief Justice John Roberts, writing for the majority, also rejected the administration’s argument that the president’s determination of “cause” was effectively beyond judicial review.
Trump has maintained that the Federal Reserve Act gives presidents the authority to remove Fed governors “for cause.”
In an Aug. 5 letter obtained by The Epoch Times, Daniel Scavino, director of the White House Office of Presidential Personnel, informed Cook that Trump was considering removing her because there was “sufficient reason to believe” she had made false statements on one or more mortgage agreements.
Cook was given 21 days to provide a written response and supporting evidence.
The allegations center on two mortgages Cook signed within weeks of one another in 2021, one for a property in Ann Arbor, Michigan, and another in Atlanta. The administration alleges that Cook represented both properties as her principal residence, potentially allowing her to obtain more favorable mortgage terms.
The White House letter argues that even if the conduct does not rise to the level of a felony, it could demonstrate “gross negligence in financial transactions” sufficient to call into question her competence and trustworthiness as a financial regulator.
Cook’s attorneys, Abbe D. Lowell and Norm Eisen, called the allegations “baseless” and said they would challenge any renewed attempt to remove her.
In Monday’s interview on CNBC, Hassett declined to weigh in further on the merits of the allegations, saying the matter was a question for law enforcement to answer, adding that he does not believe the case weighs on the Fed’s credibility or independence.
Asked about reports that Trump and recently appointed Federal Reserve Chair Kevin Warsh have held several meetings since the latter took over the central bank, Hassett said the two have known each other for decades and characterized their discussions as part of a normal exchange of economic views between the White House and the central bank.
“Kevin Warsh is as independent as it comes,” Hassett said. “If the president were to tell him to do something, he wouldn’t do it—but he would argue about why he’s not doing it if he thought it was the wrong thing to do.”
