Political Pressure on Fed’s Lisa Cook Raises Concerns Over Institutional Independence

Former Treasury Secretary Larry Summers has issued a stark warning about the escalating political attacks on Federal Reserve Governor Lisa Cook, calling the tactics "chilling" for American democracy. The criticism marks a troubling departure from traditional norms governing the central bank's independence.

Summers drew parallels between the targeting of Cook and other politically charged investigations, suggesting a dangerous erosion of institutional safeguards. "If that becomes the new norm in American politics... [that] is a very profound threat," he stated during an interview with Yahoo Finance.

The remarks come amid growing tension between the White House and the Federal Reserve, with former President TRUMP recently demanding Cook's resignation. Such direct pressure on a sitting Fed governor represents an unprecedented challenge to the central bank's traditional insulation from political interference.