Every Living Former Fed Chair is Urging the Supreme Court to Stop Trump from Removing Lisa Cook
Each former living president of the Federal Reserve, from Alan Greenspan to Janet Yellen, signed a memory of Amicus urging the Supreme Court not to allow President Donald Trump to withdraw the governor of the Federal Reserve Lisa Cook while his file against the President passes by the courts. Allowing Trump to withdraw Cook as she questions her attempt to dismiss her, said former officials, would constitute a serious compromise of the independence of the Fed and risking the reputation reliability of the Central Bank.
The former Fed chairs were joined by the former secretaries of the Ministry of the Treasury, former governors of the Fed and other federal economists and officials.
In the Thursday friend’s file of the course, the officials presented serial arguments in favor of the independence of the central bank, stressing the stability of the US dollar and more controls on inflation, loan costs and maximum employment.
“Immediately granting the government’s request to withdraw Governor Cook from the board of directors … Exposing the federal reserve to political influences, thus eroding public confidence in the independence of the Fed and compromising the credibility and efficiency of American monetary policy,” said the short 26 pages.
If the public loses confidence in the independence of the central bank, its ability to maintain low and stable inflation would be compromised, former officials have declared: “Because the stability of long -term inflation expectations is a necessary condition for stable inflation, the federal reserve will no longer be able to carry out its statusally mandated objective if its independence is threatened.”
Former officials have also questioned any government strategy that compromises the independence of the Central Bank in favor of “short -term small gains”, which ultimately leads to “substantial long -term damage”.
Later in the memory, they underlined the recent case of Turkish president Tayyip Erdoğan who dismissed several leaders of the Central Bank, ordered a drop in interest rates and saw inflation reach 85%. The Turkish economy was not positive to show, says the memory.
Although Trump’s comments are not explicitly mentioned in the brief, the president vehemently urged the Fed to considerably reduce interest rates to reduce loan costs without determining whether such a reduction reflects a political decision informed by the data. Indeed, in several speeches since Trump resumed the office, the president of the Fed, Jerome Powell, cited economic data on the rise in prices and the slowdown in employment in the political decisions of the Central Bank. Thursday’s deposit warns against ways in which similar political pressures on central banks in other countries have weakened savings.
Trump tried to shoot Cook in August in a new climb from his attacks against the Federal Reserve, his governors and his chair. Bill Pulte, director of Trump of the Federal Housing Finance Agency, filed a criminal complaint on X accusing Cook of having committed mortgage fraud, which is tax officials in the two municipalities where she owns houses has denied. This is part of a strategy of Trump’s White House to accuse the president’s political enemies of having distorted his main residences on mortgage documents to obtain more favorable interest rates. Despite growing evidence of the opposite, the White House has maintained that Trump has the right to draw cook “for good”.
The bipartite list of 18 former civil servants lasted the Reagan administration to the Biden administration, and also included the former president of the Fed to two mandates Ben Bernanke, Jared Bernstein, former president of the Council of Economic Advisors under former President Joe Biden, and Robert Rubin, former secretary of the Treasury under former President Bill Clinton.
