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Economists Warn Trump: Removing Cook Risks Fed Independence

9/2/2025

28 5 Full Breakdown

Summary

Story summary

Nearly 600 economists, including Nobel laureates, warned President Trump that removing Federal Reserve Governor Lisa Cook could undermine the Fed's independence and trust in the economy.
Economists stated Trump's allegations of mortgage fraud against Cook are unproven.
Treasury Secretary Scott Bessent recognized the Fed's independence but criticized its past errors, supporting Trump's actions.

History

Historical Context

The Federal Reserve Reform Act of 1978 aimed to enhance the independence of the Federal Reserve amid the economic turmoil of the 1970s, characterized by double-digit inflation and unemployment rates over 7%. Today, nearly 600 economists warn against political threats to this independence, emphasizing its importance for economic stability and public trust in monetary policy.

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Story summary

Nearly 600 economists, including Nobel laureates, warned President Trump that removing Federal Reserve Governor Lisa Cook could undermine the Fed's independence and trust in the economy.
Economists stated Trump's allegations of mortgage fraud against Cook are unproven.
Treasury Secretary Scott Bessent recognized the Fed's independence but criticized its past errors, supporting Trump's actions.

1 / 2