Nearly 600 economists have signed an open letter voicing support for Federal Reserve Governor Lisa Cook, emphasizing the importance of protecting the central bank’s independence from political pressure.
The signatories — including Nobel laureate Joseph Stiglitz and former Chair of the Council of Economic Advisers Jared Bernstein — warn that attempts to undermine Cook’s position could erode confidence in one of the nation’s most critical economic institutions.
COOK’S POTENTIAL EXIT HANDS TRUMP GREATER SWAY OVER FED BOARD
“Recent public statements about Governor Cook—including threats of removal and a claim that she has been fired—have arrived alongside unproven accusations,” the group of more than 590 economists wrote on Tuesday.
“This approach threatens the fundamental principle of central bank independence and undermines trust in one of America’s most important institutions,” the group added.
FEDERAL RESERVE GOVERNOR LISA COOK SUES TRUMP
The letter was organized by Tatyana Deryugina, an associate finance professor at the University of Illinois at Urbana-Champaign, and comes as Cook sues President Donald Trump in federal court after he moved to fire her over mortgage allegations.
“I organized this letter because I know that most economists learn about and understand the importance of central bank independence. But it may not be obvious to the American public and at least some politicians how important that independence is for economic stability and what independence from political influence should look like in practice,” wrote Deryugina in a statement to Fox News Digital.
“I wanted the letter to illustrate the consensus in the profession to the President, Congress, and the American public,” Deryugina added.
As it stands, Trump says Cook is fired, effective immediately. But Cook and her lawyers argue that Trump has no legal authority to remove her. And so, the unprecedented case is likely bound for the Supreme Court.
TRUMP SAYS HE’S ‘ALWAYS’ READY FOR LEGAL FIGHT AS OUSTED FED GOVERNOR PLANS LAWSUIT
Cook’s appointment was a historic first, as she became the first Black woman to serve as a governor on the Federal Reserve Board of Governors, commonly known as the Fed board.
Now, her potential removal from that same panel could mark another historic first.
The Fed board is composed of seven members, or governors, who are nominated by the president and confirmed by the Senate. This panel of central bankers is tasked with charting the nation’s economic path.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Congress designed the Federal Reserve to stand apart from politics, granting its top members a staggered 14-year term, longer than any presidency, to shield the institution from partisan influence.
Cook’s term on the Fed board runs until January 2038.
Read the full article here
