MNI BRIEF: Fed Says Long Gov Tenures Are 'Vital Safeguard'

Federal Reserve governors serve 14-year terms and can only be removed for cause, rules that Congress put in place to ensure monetary policy decisions are made based on economic data and long-term interests of the public, the Fed said in a statement, after President Trump said he is firing Fed Governor Lisa Cook. 

"Long tenures and removal protections for governors serve as a vital safeguard, ensuring that monetary policy decisions are based on data, economic analysis, and the long-term interests of the American people," the Fed said in a statement. "The Federal Reserve will continue to carry out its duties as established by law."

Cook will challenge the White House action personally in court and "seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities as a Senate-confirmed member of the Board of Governors of the Federal Reserve System," the Fed said. "As always, the Federal Reserve will abide by any court decision," a spokesperson said. 

The FOMC next meets on September 16-17.