Federal Reserve officials reiterated that the Federal Reserve Act establishes Congress’s intent for Board members to serve long, fixed terms and to be removable only for good cause, a statutory constraint referenced by a Fed spokesperson on August 27.
Regulatory specialists note that the long-term tenure and dismissal protection embedded in the statute help preserve institutional independence, enabling monetary policy decisions to be guided by data, rigorous economic analysis and the long-run public interest rather than short-term political pressures.
The Fed affirmed it will continue to discharge its duties within the law; Board member Cook has indicated via counsel that she will promptly pursue judicial review of the action, and the System will abide by any subsequent court rulings.