White House pressures Fed as Trump calls for an official to resign

The White House piled pressure on senior Federal Reserve official Lisa Cook (pictured right) to stand aside after Donald Trump attempted to fire her.

The US President’s top economic adviser said she should go on leave while her status on the board of governors at the US central bank chaired by Jay Powell (pictured, right) is determined by the courts.

‘If I were her, I would take leave right now,’ said Kevin Hassett, director of the National Economic Council, adding it was the ‘honourable thing to do’.

Trump sent Cook a letter on Monday saying she had been fired ‘effective immediately’ over claims of mortgage fraud. He said he would soon ‘have a majority’ of allies at the Fed, paving the way for interest rate cuts.

But Cook has refused to go and vowed to take legal action. The row has raised fears over the Fed’s freedom.

Independent economist Richard Duncan said: ‘Trump is moving rapidly to take absolute control of the Fed. If he succeeds, US monetary policy may never be the same again.’