Washington: Lisa Cook, the first Black woman to serve on the powerful US Federal Reserve Board of Governors, has emerged as a central figure in the escalating standoff between President Donald Trump and the country’s central bank, as the White House intensifies pressure on the Fed over interest rates and leadership.
Cook was appointed to the seven-member Fed board by former president Joe Biden and assumed office in May 2022, helping guide US monetary policy at a time of heightened inflation and economic uncertainty. In 2023, she was reappointed and sworn in for a term that runs until 2038.
A Life Shaped by Racism and Resilience
Born to a Baptist chaplain father and a nursing professor mother, Cook’s life has been marked by both academic excellence and personal trauma. As a young child in Georgia, she was physically attacked during efforts to integrate racially segregated schools—an experience that left lasting scars and shaped her later research interests.
Before joining the Fed, Cook devoted much of her academic career to studying the economic damage caused by discrimination, focusing on how racism has constrained innovation, productivity, and long-term growth in the US economy.
Target of Trump’s Removal Bid
Though she maintained a relatively low public profile as a Fed governor, Cook came under intense scrutiny last summer when Trump called for her immediate removal, alleging mortgage fraud. Cook has firmly rejected the accusation and Trump’s authority to remove her, stating she will not resign.
The case has now reached the US Supreme Court, which is hearing arguments on Wednesday. The court has allowed Cook to remain in her position for now, with the outcome expected to have far-reaching implications for presidential power over independent institutions like the Federal Reserve.
The case is being closely watched, as it could determine how much discretion a US president has in removing key Fed officials—potentially threatening the central bank’s independence.
Trump vs the Fed
Trump has repeatedly criticised the Federal Reserve for not lowering interest rates quickly enough, despite the Fed’s mandate to operate independently of the White House. His administration has also opened an investigation into Fed Chair Jerome Powell, raising concerns among economists about political interference and its potential impact on financial markets.
Academic Economist With Global Expertise
Before joining the Fed, Cook was a professor of economics and international relations at Michigan State University. She earned an economics degree from Oxford University and a PhD from the University of California, Berkeley.
A trained economist—unlike some Fed board members—Cook specialises in macroeconomics, international economics, inequality, and development economics. She speaks five languages, including Russian, and has conducted extensive research on Rwanda’s recovery following the 1994 genocide.
Policy Stance at the Fed
Since taking office, Cook has largely voted alongside Chair Powell on key policy decisions, including when the Fed began cutting interest rates and later paused reductions. She is sometimes described as a “dove,” meaning she tends to favour lower interest rates.
However, in a June speech, Cook warned about longer-term inflation risks and said the Fed’s cautious, data-driven approach to rate cuts was appropriate and flexible enough to respond to changing conditions.
Facing Criticism and Defending Credentials
Cook’s critics have questioned her qualifications, claims her supporters say are racially motivated. She has publicly defended her record, telling lawmakers in 2022:
“I have been the target of anonymous and untrue attacks on my academic record.”
She cited her doctorate and expertise in macroeconomics and international economics, noting that several Fed board members, including Powell, are not trained economists.
Researching the Cost of Discrimination
Growing up in a region where public swimming pools were destroyed rather than integrated, Cook was among the first Black children to attend a previously segregated school. Her research has examined lynchings, patent filings by Black inventors, and labour market inequality, arguing that discrimination harms entire societies, not just its direct victims.