Lawmakers question Trump's chosen nominee for the Federal Reserve over concerns regarding the autonomy of the central bank.
In a heated political climate, President Trump's nominee, Stephen Miran, is facing confirmation for a seat on the Federal Reserve board. The nomination, which has raised concerns about Trump's efforts to exert more control over the central bank, comes as the Fed is expected to cut its benchmark interest rate in an effort to prop up the softening job market.
Currently serving as chairman of the president's Council of Economic Advisers, Miran has assured senators of his independence, pledging to "call 'em like [he] sees 'em" if confirmed. Sen. John Kennedy, who signaled his approval of Miran's nomination, referred to him as a "future governor" of the Fed. However, Kennedy warned Miran to be mindful of his actions, stating that they would hold him to his word.
Sen. Elizabeth Warren, on the other hand, has expressed concerns about Trump's attempts to influence the Fed's independence. During the confirmation hearing, Warren questioned Miran about his independence, to which Miran hedged, saying only that Joe Biden had been certified as the winner.
Trump's nomination of Miran comes after the departure of Fed governor Adriana Kugler, who stepped down in August to return to a teaching post at Georgetown University. If Trump successfully appoints both Miran and a replacement for Lisa Cook, who is challenging her dismissal in court over mortgage fraud allegations, he will have appointed a majority of the Fed's governing board.
Trump has repeatedly threatened to fire Fed Chairman Jerome Powell, and his attempts to create an additional vacancy on the Fed's governing board by firing Lisa Cook have not gone unnoticed. Sen. Kennedy also quizzed Miran about his ability to operate at arm's length from the White House.
By law, the Fed is designed to be insulated from political pressure to make decisions promoting long-term economic stability. However, the nomination of Miran, who currently serves as an administration economist, has sparked debate about the potential for political influence on the central bank's decisions.
If confirmed, Miran plans to take an unpaid leave from his job as an administration economist to serve on the Fed. The White House hopes to have Miran seated as a Fed governor before the next policy meeting in mid-September. As the confirmation process continues, the future of the Federal Reserve and its independence remains uncertain.
Read also:
- Lu Shiow-yen's Challenging Position as Chair of the Chinese Nationalist Party (KMT) Under Scrutiny in Donovan's Analysis
- Palmer engages in a dispute with AfD.
- Eric Adams reportedly considering abandoning his mayoral campaign for a Trump administration position
- Musk Intends to Allocate $100 Million to Trump Supporters Following Tesla's Advertising in the White House
