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Kevin Hassett, director of the White House National Economic Council, has publicly stated he will not push to replace Federal Reserve Governor Lisa Cook, even as allegations of irregularities in her pre-appointment mortgage applications continue to swirl around her tenure.
Hassett also signaled that the administration expects the Fed to hold or cut interest rates, citing easing inflation as the rationale.
A Supreme Court ruling changed the math
President Trump attempted to remove Cook from the Fed’s Board of Governors in August 2025. Cook contested the move legally, and the dispute climbed all the way to the Supreme Court, which ruled 5-4 on June 29, 2026, that the removal was impermissible.
The original allegations against Cook involve claimed misrepresentations on mortgage documents in Michigan and Georgia, both predating her Fed appointment. Cook has denied any wrongdoing. Hassett had previously suggested Cook take a leave of absence while the fraud accusations were resolved.
Kevin Warsh was confirmed as Fed Chair in 2026, reshaping the leadership dynamic at the central bank.
Inflation is the real subtext
As of mid-2026, the headline Personal Consumption Expenditures rate, the Fed’s preferred inflation gauge, sat at roughly 3.7%. That is well above the Fed’s 2% target, which makes Hassett’s rate-cut optimism a notably bullish read on the trajectory of price pressures.
The Supreme Court’s 5-4 ruling means any future removal attempt faces the same legal wall, reducing the probability of sudden, politically motivated board reshufflings.
Cook has been a consistent voice on economic inclusion and labor market slack. Her alignment with or against Warsh on the timing of cuts will shape how divided or unified the Fed appears to markets in its communications.
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