Hassett Defends Fed Independence Amid Cook Removal Controversy

National Economic Council head Kevin Hassett faced intense questioning on CNBC's Squawk Box over the Federal Reserve's credibility under Donald Trump. The White House has been considering removing Fed governor Lisa Cook due to alleged false statements on mortgage agreements. Hassett stated that he did not think this would happen and that it was a 'law enforcement matter.'

Co-host Melissa Lee asked if Hassett could understand concerns about the president wanting to remove Cook, given reports of meetings between Trump and Kevin Warsh, who is set to become the new Fed chair. Hassett responded by saying that the president trusts Warsh's judgment and that he would not take actions without debate.

Hassett emphasized that Warsh is 'as independent as it comes' and would argue against any instructions from the president if he thought they were wrong. However, Cook has maintained her innocence and stated she was given insufficient notice regarding the removal consideration.