Trump White House pressures Fed Governor Lisa Cook to go on leave as lawsuit looms

White House National Economic Adviser Kevin Hassett prepares to give a television interview at the White House in Washington, D.C., U.S., August 4, 2025.Jonathan Ernst | ReutersPresident Donald Trump's top economic adviser, Kevin Hassett, said Wednesday that Federal Reserve Board of Governors member Lisa Cook should go on leave from the central bank even as she plans to file a lawsuit challenging her removal by Trump."If I were her in her circumstance, I would take leave," Hassett told reporters outside the White House."I think it's the honorable thing to do," he continued, after a reporter asked whether Cook should be presumed innocent of allegations of mortgage fraud raised by another Trump-appointed official.Hassett also def Trump's ability to remove a Fed governor "for cause," which is the legal requirement for a president to fire a board member at the central bank.Cook, the first Black woman to serve as a Fed governor, is expected to soon file a lawsuit over Trump's move, her attorney, Abbe Lowell, said Tuesday.Read more CNBC coverageTrump White House pressures Fed governor Lisa Cook to go on leave as lawsuit loomsFeds fail to get indictment against DC sandwich thrower fired by DOJ: ReportFed responds to Trump effort to fire Lisa Cook, notes president needs 'cause'Trump says he'll soon have a Fed 'majority' to push rates lowerLisa Cook will sue over Trump firing from Fed board, her lawyer saysCracker Barrel scraps new logo after outrage from customers, TrumpFed mum on whether Lisa Cook is at the office after Trump removed her from boardLutnick suggests Cook's refusal to accept Trump firing from Fed supports fraud claimTrump Pentagon weighs taking equity stake in Lockheed, defense names: Lutnick'Our country is in danger': French PM takes confidence vote gamble over budget woesTrump vows new tariffs, chip restrictions on countries with digital taxesTrump tells Fed's Lisa Cook she's fired; she says 'he has no authority to do so'Trump's "attempt to fire her, based solely on a referral letter, lacks any factual or legal basis," Lowell said in a statement.The Fed said Tuesday that "Cook has indicated through her personal attorney that she will mptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System."The battle over Cook's removal could end with the Supreme Court issuing a final decision on the matter.