Trump White House Urges Fed Governor Lisa Cook to Step Aside as Legal Battle Brews
The Trump administration is facing fresh controversy as pressure mounts on Federal Reserve Governor Lisa Cook to take a leave of absence amid reports of an upcoming lawsuit challenging her removal from the central bank.
On Wednesday, President Donald Trump’s top economic adviser, Kevin Hassett, suggested that stepping aside would be the “honorable” course of action for Cook, who is preparing a legal fight against her dismissal.
“If I were in her place, I would take leave,” Hassett told reporters outside the White House. He also emphasized that presidents have the authority to remove a Fed governor “for cause,” which is the legal basis cited by the administration.
Cook, who made history as the first Black woman to serve on the Federal Reserve Board of Governors, has been accused of alleged mortgage fraud — claims raised by another Trump appointee. Her attorney, Abbe Lowell, confirmed that legal action will soon be filed to challenge the President’s decision.
The standoff highlights not only the political tensions between the White House and the Federal Reserve but also raises broader concerns about the independence of U.S. financial institutions.
As the legal showdown approaches, observers say the case could have far-reaching implications for both the central bank and the limits of presidential power.
