Nearly 600 economists have signed an open letter in support of Federal Reserve Governor Lisa Cook and the principle of US central bank independence, as President Donald Trump attempts to remove her from office.
The letter, which had 593 signatories as of Tuesday, includes Nobel laureates and former US government officials. Key points include:
- Economic policy credibility requires independent monetary institutions.
- Independence of the Federal Reserve is essential to maintain that credibility.
- The letter warns that public threats of removal and unproven accusations undermine trust in one of America’s most important institutions.
“Recent public statements about Governor Cook — including threats of removal and a claim that she has been fired — have arrived alongside unproven accusations,” the letter stated, addressed to Trump, Congress, and the US public.
Notable Signatories
| Name | Notable Role |
| Claudia Goldin | Nobel Laureate in Economics |
| Joseph Stiglitz | Nobel Laureate, former Chief Economist at the World Bank |
| Paul Romer | Nobel Laureate, former Chief Economist of the World Bank |
| Christina Romer | Chair, Council of Economic Advisers under Barack Obama |
| Jared Bernstein | Chair, Council of Economic Advisers under Joe Biden |
The letter was organised by Tatyana Deryugina, Associate Professor of Finance at the University of Illinois Urbana-Champaign.
Cook, the first Black woman to serve on the Fed’s board, is challenging her ouster, and a Washington judge held a first hearing on Friday.
Trump announced on Truth Social last week that he was immediately removing Cook, citing allegations of mortgage fraud.
- Allegations suggest that Cook claimed two primary residences in 2021 – one in Michigan and another in Georgia. Primary residences generally qualify for more favourable mortgage terms.
- Despite a criminal referral being cited by Trump, Cook has not been charged with any crime, and the alleged incidents occurred prior to her Fed appointment in 2022.
The Supreme Court has indicated that Fed officials can only be removed for “cause”, which could include malfeasance or dereliction of duty.
The Federal Reserve has faced increasing pressure from Trump in recent months:
- He has called for lower interest rates and repeatedly criticised Fed Chair Jerome Powell, labelling him a “numbskull” and “moron.”
- Policymakers, however, have remained cautious in adjusting rates, taking into account the economic impact of Trump’s tariffs.
Summary Table: Cook Controversy
| Issue | Details | Status |
| Alleged Mortgage Fraud | Claimed two primary residences in 2021 | No criminal charges |
| Fed Appointment | Became Governor in 2022 | Currently in office |
| Trump Removal Attempt | Announced on Truth Social | Legal challenge underway |
| Support | 593 economists, Nobel laureates, former officials | Letter emphasises Fed independence |
| Legal Context | Supreme Court ruling: removal only for “cause” | Under judicial review |
The open letter reflects a broad consensus among economists that the independence of the Fed is fundamental to credible US economic policy, and that political interference could undermine trust in America’s most critical financial institution.
