White House National Economic Council Director Kevin Hassett said he would favor holding U.S. interest rates steady or cutting them at the Federal Reserve's September meeting, citing strong supply-side momentum and softer recent inflation data, while also dismissing speculation that he could replace Federal Reserve Governor Lisa Cook. Hassett described the Cook matter as an enforcement issue and declined to discuss the allegations in detail. The White House has asked Cook to respond by Aug. 26 to accusations linked to a 2021 mortgage application and is considering her removal, a step Cook and her lawyers say is baseless and one that could test central bank independence. The Supreme Court ruled in June that Cook could temporarily remain after finding the earlier removal process did not give her adequate notice or a chance to respond. Hassett has also said artificial intelligence could become the most important policy issue over the next two years and that the U.S. government is closely reviewing AI safety issues.