Former U.S. Treasury Secretary Larry Summers stated that the political pressure and personal attacks against Federal Reserve Board member Lisa Cook are 'unprecedented', and anyone concerned about the independence of U.S. institutions should be vigilant.
On Tuesday, President Trump escalated his attacks on Cook. Trump signed a document removing Cook from her position on the Federal Reserve Board, effective immediately. In the document, he stated:
'In accordance with Article II of the U.S. Constitution and the amended Federal Reserve Act of 1913, I hereby remove Cook from her position on the Board of Governors of the Federal Reserve System. Given Cook's dishonest behavior in financial matters and potential involvement in criminal conduct, I cannot have confidence in your integrity. At the very least, these actions reveal serious negligence on your part in financial transactions, raising doubts about your ability and credibility as a financial regulator.
Just hours before Trump signed the removal of Cook, Summers remarked on a program, 'I must point out that using legal means to attack political opponents—whether it’s the FBI raiding John Bolton's residence or the attacks on Lisa Cook—should send chills down the spine of many Americans.'
Summers' comments come at a time when the relationship between the White House and the Federal Reserve is unprecedentedly tense.
