Washington (AP) – President Donald Trump’s I vow to fire Lisa CookThe first black woman to serve, the economist Federal Reserve System The board launched another tense debate and the possibility of a legal battle over the independence of major institutions.
It also marks another potentially famous expulsion of black leaders from the federal government amid Trump’s wider crusades against diversity and inclusion policy.
Trump’s order to fire Cook is superficially consistent with the White House’s efforts to expand its power at once; The Independent Part of the Federal Government And wider Americans economy and societyCritics warn can cause long-term damage to confidence in data, policies and processes that America has its strength. The move also excludes long-standing researchers and advocates for diverse and equitable policymaking from leadership.
On Monday, Trump said he fired the cook after a director of a president-appointed housing regulator, claiming Cook had committed a mortgage fraud. Cook dismisses the dismissal as legally unfounded.
“President Trump has argued that he would fire me “for a cause” when a cause does not exist under the law, but he has no authority to do so,” he said in a statement to the Associated Press. “I will not resign. I will continue to perform my duties since 2022 to support the American economy.”
White House spokesman Kush Desai said Cook was “accused of being trusted of lying to financial documents from a very sensitive position overseeing financial institutions,” and her removal would “enhance the Federal Reserve’s reliability for both the market and the Americans.”
Repulsion from black leaders
Trump’s move prompted immediate backlash from black lawmakers.
“Dr. Lisa Cook is the first black woman to serve on the Federal Reserve. Donald Trump is trying to get rid of her without turning down any credible evidence that she did something wrong.” Hakeem Jeffriesdn.y. said in a statement.
The National Urban League, a civil rights group, called Trump’s move a “witch hunt” and denounced the president’s comments about her as “character assassination.”
and Parliamentary Black Caucus Cook defended her as “a highly respected economist who dedicated her career to dismantling barriers to innovation and economic participation.”
The Caucus condemned Trump’s rhetoric and chefs “dismissal and efforts to racist, misogyny and illegal attacks on the integrity and independence of the Federal Reserve, a dangerous attempt to politicize and control the central bank.
Cook teaches economics and international relations at Michigan State University and previously also attended the Kennedy School of Government at Harvard University. she Marshall Scholar Those who have obtained a degree from Oxford University and Spellman Collegea historically black women’s university in Atlanta.
Cook has dedicated much of his scholarship to examining how racism and targeted violence have created barriers to economic progress among Black Americans. Cook also advises Nigeria and Rwandan governments on bank reform and economic development, respectively. She has a reputation for mentoring young economists through the American Economic Association summer program.
In 2022, she was confirmed on a board sheet. The Senate Party Line Voting. Republicans accused her of being ineligible and found her research to be overly focused on race, but conservative activists questioned the quality of her scholarship. Democrats dispelled unfounded criticism.
Former President Joe Biden nominated Cook for a 14-year term in May 2023. Republicans have once again raised concerns about academic research at the intersection of economics and race. It is currently undergoing a 2023 confirmation hearing in front of the Senate Banking Committee at the time. JD Vance, R-Ohio cooked in past comments related to diversity.
“My concern is that, especially in the Federal Reserve, where we are doing important supervision activities, we may be distracted from our ability to focus on things that are far more important, as long as we focus on diversity.
Cook said, “As the governor of the Federal Reserve, I first think about double missions and two feet of that mission,” and “As governor, I have been actively fighting with my colleagues at FOMC.”
Since joining the board, Cook has defended him. artificial intelligence Economy-wide adoption takes place in a comprehensive way that ensures that all communities can maximize their technology potential. She is also an advocate Federal Reserve Independence Comply with strict data collection and policy making standards.
“One of the things I’ve always said since I became governor is that we, as policymakers, have to be humble, agile and data-dependent,” Cook said in a December speech. University of Virginia. “You need to see the data in person and interpret it as much as you can.”
It undermines the Fed’s independence
It is unclear whether Cook’s Trump exile will shake up wider confidence in the independent ability of the Federal Reserve to implement monetary policy. Trump said frankly he hopes the Federal Reserve follows his preferred policies. interest rate. The president has I’ve been publicly old repeatedly Jerome Powell, Federal Reserve Chair for maintaining the board’s independence.
The attack escalated to the threat of legal action when Trump wrote it on social media. Renovations in the Federal Reserve Building.
Since then, Trump has said he intends to appoint more allies to the Federal Reserve board.
“It’s great because we have a majority right away,” Trump told reporters Tuesday.
Some conservative economists have long argued that the background of cooks and other board members meant using the drastic power of central banks to enact beyond policies. Double mission.
Such claims against Cook found that he had bought little in his first few years on the board, but an investigation by the Trump administration raised other criticisms.
Bill Prute, Director Federal Housing Finance Agencylast week called for Cook to step down after claiming that he “fals bank documents and real estate records to obtain more favorable loan terms and potentially commits mortgage fraud.” Pam Bondy.
Cook responded to Pulte’s claims, saying, “I take my financial history seriously as a member of the Federal Reserve, so I gather accurate information to answer accurate questions and provide facts.”
“I’m not going to be bullied to step down from my position as a tweet raised some questions,” Cook said in a statement.
The Justice Department has since launched its own investigation into Cook’s application. Cook has not been charged with a crime.
Trump and his allies immediately called for Cook’s expulsion, claiming that the allegations alone were worthy of her removal. Pulte, like the New York Attorney General, imposed similar charges on other Trump enemies. Leticia James and Senators Adam Schiff of California.
Trends to fire black federal leaders
On NBC’s “Apprentice” as a former reality TV star who became known for his catchphrase “You’re fired!”, Trump is not a man who doesn’t know how to fire people from many backgrounds. But the president’s campaign against diversity, equity and inclusive policies often defends diversity, many of which are black leaders who break the barriers that stand out.
March, Trump fired Charles Q. Brown Jr.Chairman of the Co-State Chief of Staff, the highest unified position in armed services. Brown was the second black man to serve in that position. He gave speeches on racism and issued policies that promote military diversity, equity and inclusion programs.
Trump was fired in May Carla Hayden, Librarian of Congress After conservative advocacy organizations accused her of being “radical.” The president’s moves have raised questions about the separation of power, the future of libraries’ vast archives, and the preservation of books and research that are not at all complicated by the interpretation of the history of a Republican administration.
Trump has fired dozens of other political and nonpartisan appointees across the federal government, including all key sectors and regulatory commissions such as the Bureau of Labor Statistics, the Consumer Product Safety Commission, the Public Broadcasting Bureau, the Federal Trade Commission, the Federal Election Commission and Tennessee Valley Authorities.
Dedrik Asante Muhammad, president of the Joint Centre for Political and Economic Studies, warned that Cook’s potential oustermination threatens the independence of the Federal Reserve and “harms confidence in the facility at a moment when stability is critically necessary,” representing a broader aspect of the black expertise itself.
“This attack on Dr. Cook isn’t just one individual. It raises a bigger and more urgent question: Will black leaders from America’s most important institutions be respected, protected, damaged and illegal?”
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Associated Press Writer Fatimahssein contributed to this report.
