About 600 U.S. economists publicly back Fed Governor Lisa Cook, push back on Trump's removal attempt

About 600 U.S. economists have signed a public letter supporting Lisa Cook, a governor of the U.S. Federal Reserve (Fed), amid an attempt by President Donald Trump to remove her.

On the 2nd (local time), CNBC reported that in the letter sent to President Trump, Congress, and the public, they said, "Sound economic policy requires a credible monetary policy institution, and a credible monetary policy institution requires the independence of the Fed," adding, "We support Governor Cook and the Fed's institutional independence."

The letter included the names of scholars such as Nobel Prize in Economics winners Joseph Stiglitz, Claudia Goldin, Alvin Roth, Paul Milgrom, and Paul Romer, and also drew participation from former Fed economists and Christina Romer and Jared Bernstein, former chairs of the White House Council of Economic Advisers (CEA).

Earlier, on the 25th of last month, President Trump asserted in a public letter that Governor Cook committed mortgage fraud by listing two properties she did not actually reside in during 2021 as "residences," citing this as grounds for removal. However, Governor Cook has filed a lawsuit arguing that Trump does not have the authority to remove her, seeking confirmation of her status as a member of the Federal Reserve Board (FRB) and a preliminary injunction to suspend the effect of any removal.

In their statement, the economists criticized, "Trump's claim is based on unproven allegations, and this is an attempt to undermine the Fed's independence." They added, "The independence of the central bank has been a cornerstone supporting the vitality of the U.S. economy for decades."