Michigan State professor nominated to Fed board defends herself against GOP attacks
A Michigan State University economics professor who, if confirmed, would become the first-ever Black woman to serve on the Federal Reserve's Board of Governors on Thursday fended off charges from Republicans that she was unqualified for the job, saying she has spent decades studying monetary policy.
"The depth and breadth of my experience in both the public and private sectors qualify me to serve," Lisa Cook told the Senate Banking, Housing and Urban Affairs Committee, describing her experience working with community lenders, the White House Council of Economic Advisors and as a macroeconomist in the Midwest. "My approach to complex problems is to be guided by facts, data and analysis."
In recent days, Cook — who President Joe Biden nominated along with Sarah Bloom Raskin and Philip Jefferson to spots on the Fed's board last month — has been the target of verbal jabs by Republican critics, arguing that her work, much of which has looked at the wider economic effects of racism and sexism, fails to show a level of expertise needed of a governor.
Peter Navarro, who advised former President Donald Trump on economic matters, suggested to the Daily Caller recently that Cook's nomination was "purely race-based," and several GOP members of the committee criticized her ahead of Thursday's confirmation hearing, with Sen. Kevin Cramer of North Dakota calling her "fundamentally not qualified."
Much of the criticism mirrored that raised recently after Biden reiterated his intention to replace retiring Supreme Court Justice Stephen Breyer with a Black woman to continue a push to diversify federal institutions long dominated by white men. Other economists defended Cook as well, saying her work has explored overlooked effects on the U.S. economy that the Fed should consider.
"Beyond price stability, the Fed should be interested in employment stability and, more broadly, economic inclusion,” Darrick Hamilton, a professor of economics and urban policy at the New School in New York, told the Washington Post.
He called the criticism of Cook ahead of the nomination hearing "racist and sexist."
That criticism of Cook's record continued Wednesday, as Sen. Bill Hagerty, R-Tenn., said her professional experience and writing didn't "seem related to the mission of the Federal Reserve" and appeared "more like social science than it does economics" to him.
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Those comments coincided with charges that some governors, specifically Cook and Raskin, in this instance, might be interested in somehow using the Fed to set or react to social policy or concerns about climate change rather than sticking to setting monetary policies to protect and expand the economy, especially at a time of high inflation.
Cook responded in a level tone to questions from Hagerty and others, noting that she has a doctorate in economics from the University of California, Berkeley; received a Marshall Scholarship that allowed her to study at Oxford University in England; and has spent her career researching and studying macro and international economics. She also worked on responses to fiscal crises with the U.S. Treasury Department.
She said that she was proud of her work and that attacks on her experience were based on "anonymous and untrue attacks" on her record.
In his opening statement, Sen. Pat Toomey of Pennsylvania, the ranking Republican on the committee, criticized Cook — who grew up in rural Georgia and is from a family that fought against segregation — for voicing support for studying reparations for Black Americans in the past. He also said that she, in private conversations with him, "refused to endorse" the stated policy of Fed Chairman Jerome Powell to raise interest rates to slow and reverse inflationary pressures.
She acknowledged that there is a not-as-yet fully understood relationship between raising interest rates and its effect on unemployment. But she said she supported Powell's position, even though she would like to further study all the data available to the Fed, as well be involved in the deliberations between governors before drawing a final conclusion on specific proposals.
"I would look at the data," she said, noting that trends and evidence change, sometimes quickly, and it would be her inclination to respond to what was happening at the time she was asked to make such a decision.
The committee's chairman, Sen. Sherrod Brown, D-Ohio, criticized what he called "baseless lies" being spread about Cook's readiness or suggestions that she, or Raskin, would somehow work to radicalize the board. He said the attacks on Cook were "ginned up to discredit a highly respected economist."
"There's been a lot of hyperventilation on today's nominees based on hyperbole and misrepresentation," Brown said. "The attacks on Dr. Cook are abhorrent."
Brown said he hopes to have a vote on the nominations on Feb. 15. But with the committee evenly divided, 12-12, in an evenly divided Senate, moving the nominations out of committee could require a discharge vote by the whole Senate at some point.
As for Cook, she said she hopes she can help to address inflation and help stabilize and expand the economy for all Americans.
"Our economy is constantly evolving. Learning to do better will require humility, perseverance and diverse perspectives," she said. "If confirmed, I will faithfully support the congressionally mandated goals of stable prices and maximum employment, which Congress has entrusted to the Federal Reserve."
Contact Todd Spangler: tspangler@freepress.com. Follow him on Twitter @tsspangler. Read more on Michigan politics and sign up for our elections newsletter.
This article originally appeared on Detroit Free Press: Lisa Cook fends off Republican attacks at nomination hearing
