Independence of the Fed under Scrutiny: Former Fed Chiefs Defend Lisa Cook

In an impressive alliance, renowned former economic leaders of the United States call for preserving the political independence of the Federal Reserve (Fed). Alan Greenspan, Ben Bernanke, and Janet Yellen, all former Chairs of the Fed Board of Governors, have joined with other senior economic officials to petition the US Supreme Court to keep Lisa Cook in her role as Governor of the central bank. In these turbulent times, it is crucial to ensure the independence of monetary policy, they emphasize. This appeal comes against the backdrop of an emergency motion by the government demanding Cook's dismissal while her court case against then-President Donald Trump is ongoing. Trump attempted to remove her from office, claiming she had qualified through alleged mortgage fraud. However, a judge recently ruled that Trump's attempt was likely unlawful. The government stresses that Cook's dismissal during the ongoing legal proceedings would expose the Fed to political influences and thus undermine public trust. A recent Fed meeting, where Cook voted for a rate cut, added pressure to the decision. Notably, in the 112-year history of the Fed, no president has ever dismissed a sitting governor. Now the Supreme Court faces the decision of what signals it will send regarding the Fed's independence. The former economic leaders warn that Cook's immediate dismissal could disrupt the delicate balance of US monetary policy.