Donald Trump's chief economic advisor: Federal Reserve Board member Cook should take a leave of absence during the challenge to his dismissal decision.

The tense relationship between President Trump and the Federal Reserve is further escalating. Kevin Hassett, Trump's chief economic advisor, stated on Wednesday that Fed board member Cook should choose to take a temporary leave of absence while challenging Trump's dismissal decision. Hassett told reporters outside the White House, "If I were her, I would take a leave of absence in this situation. I think it would be the honorable thing to do." He also defended Trump's dismissal power, emphasizing that the president has the right to dismiss Fed board members in cases where there is cause, which is a prerequisite according to the law. Cook is the first African-American female to serve as a Fed board member. Her lawyer Abbe Lowell stated on Tuesday that Cook would soon challenge Trump's decision in court. Lowell stated in a release, "Trump is attempting to dismiss her with just a forwarded letter, a move lacking any factual or legal basis." The Fed released a statement on Tuesday, saying, "Cook has indicated through her personal lawyer that she will immediately challenge this action in court and seek a judicial ruling to confirm her ability to continue fulfilling her duties as a Fed board member confirmed by the Senate." Market observers anticipate that this case will ultimately be ruled on by the U.S. Supreme Court, becoming a landmark event testing the boundaries of presidential power and the independence of the Federal Reserve.