On Monday, the Senate voted to confirm Trump advisor Stephen Miran, one of the White House’s leading economic voices, to the Federal Reserve Board of Governors. Senators voted 48–47, which split mostly along partisan lines in the GOP-controlled chamber.
Nonetheless, Miran’s confirmation breaks nearly a century of precedent, becoming the first active White House aide to serve on the Fed’s board since its reorganization in the 1930s. He will join the Fed team in Washington on Tuesday, as they begin a crucial two-day meeting to shape the nation’s economic course.
Policymakers are set to discuss interest rates, which, depending on their call, could affect how much Americans pay on mortgages, auto loans, and credit cards. Most economists are betting on a rate cut this time, at least a quarter-percentage point rate cut, to boost the labour market.
Lawmakers are worried that Miran may not act independently as a member of the Fed Board
On September 4, during his confirmation hearing, Miran told Congress he would take an unpaid leave of absence from his White House job while serving at the Fed. His decision, however, raised some concern about whether he could act independently, as some had expected him to resign from the position altogether. Miran, however, emphasized during the hearing that the Fed’s independence is “critical.”
In the past few months, Trump has not hidden his ambition to steer the Federal Reserve, openly outlining plans to create “a majority” on the Fed’s board, a move that critics say could threaten its long-standing independence.
Some have seen his clashes with Chair Jerome Powell over interest rates and criticism of several senior Fed officials as interference in the central bank’s work. Now, with his backing of Miran, some have hinted that he intended to assert influence on the board. Senator Elizabeth Warren even voiced fears that Miran might be perceived as a puppet rather than an impartial board member.
Miran has backed some of Trump’s economic policies, including his global tariff strategy. He believes that the import duties won’t stoke inflation and that tighter immigration policies would ease housing demand and bring down prices.
Trump attempted to fire Fed Governor Lisa Cook
Miran’s appointment comes as Fed Governor Lisa Cook fights to keep her seat on the central bank’s board. Trump has moved to oust Cook, citing allegations of mortgage fraud and asserting his constitutional authority to remove her. Earlier, Bill Pulte, appointed by Trump to help regulate Fannie Mae and Freddie Mac, had connected Cook to three mortgage properties in two referrals to the Justice Department.
The mortgages date back to 2021, before former President Biden tapped Cook to serve on the Federal Reserve board. Nonetheless, Trump acted on these accusations to fire her.
Cook has denied the claims and even filed a lawsuit to challenge her dismissal. Over the last several meetings, she has voted to maintain current interest rate levels, contrary to the President’s demand.
On a turn of events, Trump has been denied the right to dismiss Lisa Cook from the Federal Reserve’s Board of Governors for now. As reported by Cryptopolitan, a federal appeals court decided in an emergency ruling Monday, just hours before the central bank begins its two-day monetary policy meeting.
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Source: https://www.cryptopolitan.com/senate-confirms-trump-advisor-to-fed-board/