Bipartisan Leaders Urge Supreme Court to Protect Fed Governor

A diverse group of former Treasury secretaries, Federal Reserve chairs, and senior economic policymakers is calling on the Supreme Court to prevent President Donald Trump from dismissing federal governor Lisa Cook. They warn that this move could threaten both the independence of the central bank and broader economic stability.

In a legal brief submitted to the court, a former official highlighted that allowing Trump to remove Cook while her case is being litigated would undermine the protective measures instituted by Congress nearly 90 years ago against political pressures. “This would invite political influence into the Federal Reserve, potentially diminishing public trust in its independence and jeopardizing the credibility and effectiveness of U.S. monetary policy,” they wrote.

The signatories of this brief include all living former Fed chairs: Alan Greenspan, Ben Bernanke, and Janet Yellen, as well as six former Treasury secretaries from both political parties, such as Henry Paulson, Robert Rubin, Lawrence Summers, Timothy Geithner, and Jacob Lew. Additionally, prominent figures like Phil Gramm, former chair of the Senate Banking Committee, and respected economists such as Jason Furman, John Cochran, and Kenneth Rogoff have also participated. The brief was prepared by attorneys from Covington & Burling, a firm that has faced criticism from Trump.

The Justice Department has advised Trump to go ahead with Cook’s removal, disregarding a lower court’s finding that she is likely to succeed in her legal claim. Supreme Court Justice John Roberts has required a response from Cook by 4 p.m. on Thursday, and the court could issue decisions regarding her status at any time.

Cook, who was appointed by President Joe Biden in 2022, is facing allegations of mortgage fraud, which the White House cites as justification for her potential dismissal. She has been in the role since late August, including during the Fed’s vote to lower interest rates for the first time since December.

Former officials have referenced research indicating that central banks insulated from short-term political influences tend to experience lower inflation and more stable long-term interest rates. “The Federal Reserve’s capacity to manage inflation is linked not only to its actual independence from political pressures but also to how the public views that independence,” they asserted, though without providing specific evidence. “If the public and financial markets believe that the Federal Reserve operates independently, their actions will align with those expectations, contributing to lower and stable inflation, which corresponds to reduced long-term interest rates.”