White House Urges Fed Governor Cook Leave Amid Legal Fight

President Trump fired Federal Reserve Governor Lisa Cook over allegations that she cited separate properties as her primary residences in 2021, claims she denies and plans to legally challenge. Kevin Hassett, director of the White House National Economic Council, urged Cook to take leave during the legal proceedings, stating that her refusal to do so suggests partisanship that undermines Fed independence. Cook, the first Black woman on the Fed's Board of Governors, was nominated by President Biden in 2022 and insists Trump lacks legal grounds to remove her. The Fed has stated it will abide by any court decision and has deferred action on Cook's status pending litigation. Trump's move to remove Cook, if successful, would help secure a Trump-appointed majority on the Fed board amid desires for lower interest rates. Legal experts note that while presidents can remove Fed governors "for cause," the definition of cause remains ambiguous, and no president has previously dismissed a Fed governor since the institution's founding in 1913.