A group of former leaders from the Federal Reserve and Treasury Department are urging the U.S. Supreme Court to intervene and prevent the removal of Lisa Cook from the central bank’s board. In a joint appeal, ex-officials argue that maintaining the independence of the Fed is crucial to ensuring stable monetary policy and protecting the integrity of financial institutions. n nThe intervention comes amid legal challenges surrounding President Donald Trump’s attempt to dismiss Cook, a prominent economist known for her research on labor markets and racial disparities. The former chairs and secretaries emphasize that allowing political interference in central bank appointments could undermine public confidence and weaken the effectiveness of economic governance. n n”The Federal Reserve must remain insulated from partisan influence,” one signatory stated, stressing that abrupt personnel changes without cause threaten long-term economic stability. The brief, filed with the Court, warns that undermining institutional autonomy may lead to erratic policymaking and reduced credibility in global markets. n nCook, the first Black woman to serve on the Fed’s governing board, has been a vocal advocate for data-driven decisions and inclusive economic growth. Her potential removal has sparked debate over the balance between executive authority and institutional independence. n nSupporters highlight her contributions to understanding employment trends and inflation dynamics, noting that her presence strengthens the diversity of perspectives within the central bank. They argue that forcing her out without substantive justification sets a dangerous precedent. n n”In the private sector, someone in her position might have resigned under similar pressure,” observed a commentary from City Journal, underscoring the unusual nature of the situation. However, the collective stance among former policymakers is that judicial action is necessary to uphold the rule of law and safeguard the Fed’s mission. n nThe case has drawn attention from major financial outlets, including The Wall Street Journal and CNBC, which report growing concern among economists about the implications of politicizing central banking. n nAs the Supreme Court prepares to consider the matter, the outcome could have lasting consequences for how monetary authorities operate in times of political tension. n
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Top Economic Leaders Warn Supreme Court to Allow Lisa Cook to Remain at Fed, for Now The New York TimesFormer Fed, Treasury chiefs urge Supreme Court to block Trump firing Lisa Cook CNBCFormer Fed Chairs Urge Supreme Court to Protect Fed Independence The Wall Street JournalSCOTUStoday for Wednesday, September 24 SCOTUSblogIn the Private Sector, Lisa Cook Might Have Resigned By Now City Journal