Nearly 600 Economists Back Fed Governor Lisa Cook Amid Trump Criticism

According to a public letter signed by nearly 600 economists, including Nobel laureates, attempts to remove Lisa Cook could undermine the Federal Reserve’s independence and face significant legal hurdles.

Summary

Nearly 600 economists reaffirmed support for Federal Reserve Governor Lisa Cook after Donald Trump called for her dismissal over alleged mortgage-loan fraud. The letter emphasized that removing a Fed governor requires a high legal threshold and urged elected officials not to compromise the central bank’s independence. Signatories include Nobel laureates Claudia Goldin and Paul Romer, former Council of Economic Advisers chair Christina Romer, and Ohio State professor Trevon Logan.

Terms & Concepts
  • Federal Reserve Independence: The principle that the U.S. central bank should operate free from political pressure to maintain stable monetary policy.
  • Fed Governor: A member of the Board of Governors of the Federal Reserve System, appointed by the President and confirmed by the Senate.
  • Open Letter: A public letter signed by multiple individuals to express collective opinion or stance on a major issue.