Economists defend Fed’s Lisa Cook against Trump firing bid

Approximately 600 economists signed a clear letter on Tuesday that President Donald Trump’s federal reserve governor Lisa Cook threatened the independence of the central bank and eroded the confidence in a key pole of the US financial system.

“Good economic policy requires reliable money institutions. Trusted monetary institutions require the independence of the Federal Reserve” letter Trump addressed the congress members and the American people.

“We are standing with Governor Cook and corporate guards that have long been supporting American economic power.”

593 signed, Nobel Laureates Joseph Stiglitz, Claudia Goldin, Alvin Roth, Paul Migrom and Paul Romer and many former federal reserve economists.

They signed the letter respectively.

The appeal was released a week after Trump became the first American president trying to remove members of the Fed’s board of directors.

On August 25, Trump issued a letter that he had been removed from his post after a administration accused of making a “mortgage fraud”.

In the letter, Trump said these claims and a criminal investigation initiated rapidly by the Ministry of Justice for the abolition of Cook.

However, the economists in the open letter on Tuesday said the Congress designed the Fed’s Fed as independent and “insulated from daily politics”, which the Congress adopted in 1913.

Trump explicitly presses the members of the Federal Reserve Board on charges of reducing the economic growth of the US by reducing borrowing costs for months.

Before accusing Cook of fraud and trying to ignite him, Trump created similar accusations against the Federal Reserve President Jerome Powell, claiming that Washington had misunderstood the building renewal to his historic center on DC.

Tr Trump said in July to find a reason to expel Powell in July, Tr Trump said.

After supporting Trump Powell, he returned to cook.

The FED seems ready to vote in September to reduce the target interest rate quarter. However, Trump and his allies want more upright cuts.

The letter also states that the attacks on Trump and Cook, one of the officials, are based on “unproven accusations”.

“This approach threatens the fundamental principle of the Central Bank’s independence and weakens the trust in one of the most important institutions of America. This trust is the cornerstone of the system that has fueled the economic vitality of America for decades.”

He also warns that the weakening of the high standard for lifting a governor has “increases the uncertainty of monetary policy and forces markets to political risk interest rates, and increases these rates and costs for families and businesses”.

Cook filed a federal lawsuit to prevent Trump from firing him, and said that the allegations against him were excuses and wrong in the court applications.

The judge in the case has not yet decided when the transactions continued after a hearing on Friday after a hearing on Friday.

Urbana-Champaign, an assistant finance professor at the University of Illinois by Tatyana Deryuggina, the letter of the economists, was first reported. Bloomberg.

The White House did not immediately respond to CNBC’s request for comments about the letter.