Federal Reserve Gov. Lisa Cook Confirmed for New 14-Year Term

Federal Reserve Gov. Lisa Cook, the first Black woman to serve on the governing board of the U.S. central bank, has been narrowly confirmed for a new 14-year term. The vote to confirm Cook was 52-47, with Sen. Mike Rounds from South Dakota as the lone Republican senator in favor of her confirmation.

A Historic Confirmation

The Federal Reserve board seats carry fixed, 14-year terms, and governors can serve some or all of the tenure. Last year, Vice President Kamala Harris cast a tiebreaking vote to secure Cook's initial confirmation to a Fed board seat that was set to end early in 2024.

Support from Senator Sherrod Brown

Sen. Sherrod Brown, the Ohio Democrat and Chair of the Senate Banking Committee, expressed his confidence in Cook's abilities to shape monetary policy effectively. He believes that she will focus on ensuring economic growth from the middle-class outwards.

Speaking about Cook's previous confirmation experience, Brown condemned the unfair and underhanded attack on her character and qualifications. As an eminently qualified woman of color, Cook faced unfounded criticism.

Impressive Background

Before joining the Federal Reserve, Cook served as a professor of economics and international relations at Michigan State University. Additionally, she held the position of senior economist on the Council of Economic Advisors in the Obama White House.

Inflation Strategy and Outlook

Since Cook's arrival at the Fed in May 2022, she has supported Fed Chair Jerome Powell's approach to swiftly raise the central bank's policy interest rate in order to counteract inflationary pressures. Fed officials are currently grappling with whether the benchmark rate, currently ranging from 5.25% to 5.5%, is sufficient or if further rate hikes are necessary.

During her speeches, Cook has shown support for the Fed's 2% annual inflation target. However, some economists advocate for a higher target, expressing concerns that pursuing lower inflation rates could weaken the economy and increase unemployment.

Federal Reserve Gov. Lisa Cook's confirmation marks a historic milestone, bringing diversity and expertise to the governing board of the U.S. central bank. Her dedication to sound monetary policy and inclusive economic growth is expected to positively impact the nation's financial landscape.