Outstanding economists are supporting the governor of the Federal Reserve, Lisa Cook, After President Donald Trump decided to fire her based on accusations that he committed mortgage fraud.
More than 450 economists signed an open letter supporting Cooksaying that there is a very high bar to remove the governors of the FED and that elected officials should refrain from actions and rhetoric that erosion the independence of the Central Bank.
The letter, published on Tuesday, included the signatures of the Nobel Prizes Claudia Goldin and Paul Romer. It was also signed by Christina Romer, who presided over the Council of Economic Advisors of President Barack Obama, and Trevon Logan, professor at Ohio State University and co -author of articles with Cook.
“Recent public statements about Governor Cook – including threats of dismissal and the claim that he has been dismissed – have come accompanied by accusations without foundation,” they wrote. “This approach threatens the fundamental principle of independence of the Central Bank and undermines confidence in one of the most important institutions in the United States.”
Trump said in a letter published in Truth Social last week that he was taking measures to fire Cook “with immediate effect” due to accusations not proven that he lied in one or more requests for mortgage loans in 2021. Cook sued Trump to fight dismissal and remain in his position, responding that the accusations are related to a moment before she assumed the position and does not constitute the “cause” necessary to say goodbye to a governor of the Federal Reserve.
Cook became the first black woman to be part of the Board of Governors of the Federal Reserve when she was nominated by President Joe Biden in 2022. His mandate will not expire until 2038. The president’s decision to overthrow Cook is the last one of a constant series of attacks against the Fed since he returned to the White House in January, whose objective is to ensure that the Central Bank reduces interest rates.
If Trump manages to dismiss it, he would have the opportunity to appoint another governor of the Fed, What would potentially give a majority in the seven -member Board and increase the possibilities that it can impose a more direct influence on the independent process of fed rates.
The letter was also signed by the former chief economist of the Department of Labor, Janelle Jones, the professor of the University of California at Berkeley, David Romer, and the former economists of the Federal Reserve, Claudia Sahm and Julia Coronado. “We support Governor Cook and the institutional guarantees that for a long time have supported the US economic strength,” they said in the letter.
