Former Fed chairs warn that removing Lisa Cook could lead to inflation boom

A group of the country's top economic leaders, including every living former Federal Reserve chair, filed an amicus brief with the Supreme Court on Thursday in support of Fed governor Lisa Cook, who President Donald Trump is seeking to remove

A group of the country's top economic leaders, including every living former Federal Reserve chair, filed an amicus brief with the Supreme Court on Thursday in support of Fed governor Lisa Cook, who President Donald Trump is seeking to remove.

The group, led former central bank chiefs Alan Greenspan, Ben Bernanke and Janet Yellen, said that “allowing the removal of Governor Lisa D. Cook while the challenge to her removal is pending would threaten that independence and erode public confidence in the Fed.”

The bipartisan group, which also includes former Treasury Secretaries Robert Rubin, Larry Summers, Hank Paulson, Jack Lew and Timothy Geithner, added that “the independence of the Federal Reserve, within the limited authority granted by Congress to achieve the goals Congress itself has set, is a critical feature of our national monetary system.”

As the U.S. central bank, the Federal Reserve is part of the U.S. government and its leaders are put in place by elected officials, but it also retains a considerable amount of independence that is meant to allow it to make decisions purely out of economic concerns rather than political ones.

The former economic officials said that an erosion of Fed independence could result “in substantial long-term harm and inferior economic performance overall.”