A bipartisan coalition of former Treasury secretaries, Federal Reserve chairs, and economic experts has urged the U.S. Supreme Court to prevent President Donald Trump from firing Fed Governor Lisa Cook. They argue that her removal could threaten the stability of the economy.
In a friend-of-the-court brief submitted on Thursday, the group contended that allowing Trump to dismiss Cook—who is currently challenging her removal—would undermine public trust in the Federal Reserve and hinder efforts to stabilize prices, enhance employment, and moderate long-term interest rates.
The brief highlights concerns that political interference in the Fed could lead to decreased public confidence in its independence, compromising the effectiveness of U.S. monetary policy. Among those supporting Cook are former Fed chairs Ben Bernanke, Alan Greenspan, and Janet Yellen, all of whom stressed the importance of maintaining the Fed’s operational independence to combat inflation.
The Justice Department seeks the Supreme Court’s permission for Trump to remove Cook while contesting a lower court’s ruling that suggested she is likely to win her lawsuit. Since Trump announced his intention to discharge her due to alleged mortgage fraud—which she denies—Cook has remained in her role since late August.
Cook’s legal team is expected to respond to the government’s request later today. The Supreme Court has set a rapid timeline for written briefs but has not announced when it will issue a decision.
Despite previously siding with Trump in other firing-related cases, the Supreme Court has distinguished the Federal Reserve as a “uniquely structured, quasi-private entity.” The group supporting Cook includes notable policymakers from both political parties, reflecting widespread concern over threats to the Fed’s independence.
The brief emphasizes that compromising the Fed’s autonomy could lead to rising inflation rates. “There is broad consensus among economists,” the group wrote, “that a more independent central bank will lead to lower and more stable inflation without creating higher unemployment, thereby achieving the Federal Reserve’s statutory objectives of price stability and maximum employment.”
Notably, while former Treasury Secretary Steven Mnuchin, who served under Trump, was not among those signing the brief, the list includes influential figures like Timothy Geithner, Jacob Lew, Henry Paulson, and Lawrence Summers.
The intervention highlights rising concerns regarding political threats to the Fed’s independence. The former officials argued that non-independent central banks often prioritize short-term gains to the detriment of long-term economic health. They warned that Trump’s attempt to dismiss Cook could undermine the Fed’s mission, particularly as he calls for lower interest rates.
“The Fed’s ability to fight inflation is directly related not only to its actual insulation from short-term political pressures but also to the public’s perception of its independence,” the group noted in their brief. Their practical experiences in policymaking underscore the risks associated with diminishing central bank autonomy, which could lead to higher inflation and borrowing costs.
Trump’s assertion of firing Cook emerged last month following accusations of fraudulent mortgage practices linked to the listing of her homes as “primary residences” to obtain better loan conditions. Cook has denied the accusations and remains in office.
The former officials expressed concern that those closely monitoring the Fed are wary of the implications for its credibility and effectiveness if a board member is dismissed amid ongoing legal challenges. They stated, “Those audiences will be more skeptical of the Fed’s independence and commitment to long-term low-inflation policies if it appears that a member of the Board of Governors is being removed based on allegations that are actively under challenge in litigation.”
The filing was prepared by Covington & Burling, a law firm that has previously faced executive orders from Trump.
