Current and former Federal Reserve officials struck a common note when asked about Lisa Cook’s situation: It’s imperative the central bank’s independence is preserved.
Cook, a Fed governor nominated in 2022 by then-President Joe Biden, has faced attacks over accusations of mortgage fraud from Federal Housing Finance Agency Director Bill Pulte. Justice Department attorney Ed Martin also urged Chair Jerome Powell to fire Cook from her post and confirmed a criminal investigation will take place.
The central bank official rejected the idea of resignation Wednesday, saying in a statement she has “no intention of being bullied to step down from my position because of some questions raised in a tweet.”
Cleveland Fed President Beth Hammack told CNBC on Friday that she stood by Cook, noting: “I know Lisa Cook to be an outstanding economist and a person of high integrity, and I think it’s critically important that the Fed maintains its independence on monetary policy so we can ensure great outcomes for the American public.”
The latest developments have fanned concerns on Wall Street surrounding the Fed’s independence. Trump has notably been a vocal critic of Powell, nicknaming him “too late” with regards to the timing of modifying interest rates and accusing him of being “political.”
