A powerful coalition of former economic leaders — including every living former chair of the Federal Reserve, multiple ex-Treasury secretaries, and top White House economic advisors — have urged the U.S. Supreme Court to stop President Donald Trump from removing Federal Reserve Governor Lisa Cook while her lawsuit challenging the dismissal is pending.
In an amicus brief filed Thursday, the bipartisan group warned that allowing Trump to oust Cook now would undermine the independence of the Federal Reserve and damage confidence in U.S. monetary policy.
“The independence of the Federal Reserve, within the limited authority granted by Congress to achieve the goals Congress itself has set, is a critical feature of our national monetary system,” the filing stated. “Allowing the removal of Governor Lisa D. Cook while the challenge to her removal is pending would threaten that independence and erode public confidence in the Fed.”
Bipartisan Economic Heavyweights Unite
Signatories included former Fed chairs Alan Greenspan, Ben Bernanke, and Janet Yellen; former Treasury secretaries Robert Rubin, Larry Summers, Hank Paulson, Jack Lew, and Timothy Geithner; and former White House Council of Economic Advisers chairs Glenn Hubbard, Greg Mankiw, Christina Romer, Cecilia Rouse, Jared Bernstein, and Jason Furman.
The brief was also signed by former Fed Governor Dan Tarullo and leading economists Ken Rogoff, Phil Gramm, and John Cochrane. Gramm, a Republican and former chairman of the Senate Banking Committee, joined Democratic counterparts in stressing the risks of political interference in monetary governance.
Legal Battle Over Trump’s Firing Authority
The dispute stems from Trump’s Aug. 25 announcement that he was firing Cook over alleged mortgage fraud related to two residential properties. Cook has denied any wrongdoing and filed suit in federal court to block her removal.
On Sept. 9, a district judge in Washington, D.C., issued an order preventing Trump from firing Cook while the case moves forward. That decision was later upheld in a split ruling by a three-judge panel on the D.C. Circuit Court of Appeals.
The Trump administration has since asked the Supreme Court to lift those rulings, clearing the way for Cook’s removal from the Fed’s seven-member Board of Governors. Cook’s legal team faces a Thursday 4 p.m. ET deadline to respond to the Justice Department’s arguments.
Stakes for the Federal Reserve
The coalition’s brief explained that removing Cook prematurely could set a precedent for future presidents to dismiss Fed officials for political reasons, jeopardizing the central bank’s credibility.
“Exposing the Federal Reserve to political influences,” the filing warned, “would erode public confidence in the Fed’s independence and jeopardize the credibility and efficacy of U.S. monetary policy.”
The Supreme Court is expected to decide soon whether Trump can proceed with the firing while Cook’s lawsuit is still pending.
