The Congressional Black Caucus had harsh words for President Donald Trump in a statement supporting Federal Reserve Governor Lisa Cook.
Last week, the Spelman College grad came under fire from the president in a social media post alleging that Cook committed mortgage fraud. While Cook has not officially been charged with any crimes, he called for her to resign.
A distinguished economist, the Georgia native is the first Black woman to sit on the Federal Reserve Board of Governors. She also held roles in the Clinton, George W. Bush, and Obama administrations.
Appointed to the Fed by President Joe Biden in 2022, Cook has a permanent vote on the central bank’s rate-setting committee and has consistently voted alongside Chair Jerome Powell. Her term runs through January 2038.
Monday, in a letter posted to his Truth Social account, Trump claimed he had “sufficient cause” to terminate Cook from the regulatory body.
Read More: Donald Trump’s Letter to Lisa Cook
Trump wrote: “Pursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately.”
Tuesday, the Congressional Black Caucus swiftly came to Cook’s defense in a statement, which said in part:
“Let’s be clear: this is a racist, misogynistic, and unlawful attack on the integrity and independence of the Federal Reserve. It is a dangerous attempt to politicize and exert control over the central bank — one that will only continue to damage the economy, harm hardworking Americans, and undermine our credibility on the world stage.
“President Trump does not have the authority to remove Dr. Cook, and she has made clear that she does not intend to step down from the Board. The Congressional Black Caucus applauds Dr. Cook for her fortitude and looks forward to her continued service throughout the remainder of her term.”
Cook’s lawyer said his client would challenge the firing in court.
According to the Federal Reserve Act of 1913, a president can only fire a Fed governor “for cause.” If successful, Cook’s removal from the Fed would potentially give Trump the outsize influence he’s been seeking at the bank.
In 2019, Cook, then an associate professor of economics and international relations at Michigan State University, published an op-ed in The New York Times with Anna Gifty Opoku-Agyeman entitled “It Was a Mistake for Me to Choose This Field,” exploring how economics has not been a “welcoming or supportive place” for Black women.
The piece quoted a survey from the American Economic Association that found Black women, compared to all other groups, had to take the most measures to avoid possible harassment, discrimination and unfair or disrespectful treatment.
“I would not recommend my own [Black] child to go into this field,” said one of the female respondents. “It was a mistake for me to choose this field. Had I known that it would be so toxic, I would not have.”
