600 Economists Support Cook and Central Bank Independence
Open Support for Dismissed Fed Board Member Lisa Cook
Nobel Laureates and Leading Economists Join in Signing Open Letter
According to reports from Fox Business and others on September 3 (local time), more than 590 economists, including Nobel Prize laureate Joseph Stiglitz, have sent an open letter to U.S. President Donald Trump, urging him not to threaten the independence of the central bank. This move was prompted by President Trump's decision to dismiss Federal Reserve Board member Lisa Cook.
Fox Business reported that on September 2, the economists released an open letter titled "Economists' Open Letter in Support of Lisa Cook and the Independence of the Federal Reserve."
In the letter, they stated, "Recent public statements and remarks, including threats of dismissal and claims that she has been dismissed, have been made alongside unsubstantiated allegations," emphasizing, "This approach threatens the fundamental principle of central bank independence and undermines trust in one of the most important institutions in the United States-the Federal Reserve."
The open letter was signed by Nobel laureate Stiglitz, as well as Jared Bernstein, who served as chair of the White House Council of Economic Advisers under the Joe Biden administration, among others.
Tatyana Deryugina, assistant professor at the University of Illinois and organizer of the open letter, told Fox Business, "For the American public and at least some politicians, it may not be clear how important central bank independence is for economic stability or how independence from political influence should actually be implemented. We wanted the letter to show the consensus among professors to the president, Congress, and the American people."
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This letter comes as Lisa Cook has filed a lawsuit in federal court against President Trump, who attempted to dismiss her over allegations related to a mortgage loan. On August 25, President Trump dismissed Cook, citing suspicions of mortgage loan fraud. However, after receiving the dismissal notice, Cook filed a lawsuit, arguing that President Trump's decision violated the Federal Reserve Act.
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