Trump Pressures Fed Again, Hassett Denies Taking Over from Cook and Suggests Status Quo or Rate Cut in September

August 10th — Kevin Hassett, Director of the National Economic Council, responded on Monday to the dismissal controversy of Federal Reserve Governor Lisa Cook, stating that the incident is a "law enforcement issue" and refusing to comment on the details of the allegations.

Responding to speculations from the public that he might replace Cook as a Federal Reserve Governor, Hassett explicitly denied, saying, "No, I assure you that is not going to happen."

Hassett also shared his views on monetary policy, stating that if he were currently a Fed official, considering the strong supply-side momentum and recent easing in inflation data, he would choose to keep interest rates unchanged or cut them at the September interest rate meeting.

Previously, the Trump administration initiated the dismissal proceedings against Cook, alleging a housing disclosure issue in her 2021 mortgage application. The White House has requested Cook to respond to the allegations by August 26th and indicated that they are considering her dismissal.

Cook and her lawyers have denied all charges, calling the allegations "baseless," and emphasizing that Trump's attempt to dismiss the Federal Reserve Governor could affect the central bank's independence.

In June of this year, the U.S. Supreme Court ruled that Cook could temporarily remain in office, stating that the previous dismissal process did not provide her with sufficient notice and opportunity to defend herself. If this dismissal is successful, Trump will have the opportunity to nominate a new Federal Reserve Governor, further influencing the future direction of monetary policy.