A bipartisan group of former high-ranking economic policymakers has joined together to suppress President Trump’s firing of Fed Governor Lisa Cook amid ongoing litigation in a legal brief to the Supreme Court. The group includes former Fed chairs Alan Greenspan, Ben Bernanke, and Janet Yellen, as well as former Treasury Secretaries Robert Rubin, Larry Summers, Hank Paulson, Jack Lew, and Timothy Geithner, among others.
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“Allowing the government to remove a member of the Board of Governors for the first time in the Nation’s history, while under the cloud of legal challenge, will erode public confidence in the Fed’s independence and threaten the long-term stability of our economy,” read the brief.
Firing Cook Risks Fed Credibility, Warns Former Top Economic Leaders
The brief also notes that allowing Trump to fire Cook would threaten the “credibility and efficacy of U.S. monetary policy” and provides an example of political interference in Turkey that led to significant inflation.
Last month, President Trump attempted to fire Cook over allegations of mortgage fraud that were first brought to light by Federal Housing Finance Agency (FHFA) Director Bill Pulte. Cook responded with a lawsuit to keep her position, arguing that Trump had no legal grounds to remove her.
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