Hundreds Economists Defend Fed Governor Cook Against Trump Removal Effort

Nearly 600 economists, including several Nobel laureates such as Joseph Stiglitz, Claudia Goldin, Paul Milgrom, and Paul Romer, have signed an open letter condemning President Donald Trump's attempt to fire Federal Reserve Governor Lisa Cook. Trump cited unproven mortgage fraud allegations as cause for her removal, which Cook denies, asserting the claims relate to a period before her Fed appointment and do not justify firing under the Federal Reserve Act. The economists argue that Trump's actions threaten the independence of the Federal Reserve, a cornerstone of U.S. economic stability, and undermine public trust in the institution. Cook, the first Black woman on the Fed's Board of Governors with a term through 2038, has sued Trump to contest her removal. The move to oust Cook is part of broader pressure from Trump on the Fed to lower interest rates, including previous criticisms of Chairman Jerome Powell. The White House maintains that Trump acted within his lawful authority, while experts emphasize that the Fed's independence is protected by law to shield it from political interference.