The U.S. Senate has approved Stephen Miran, nominated by President Donald Trump, to join the Federal Reserve’s board of governors. This board is responsible for establishing the country’s interest rates. Miran, currently chair of the Council of Economic Advisers, will be the first sitting White House official to serve on the Fed’s board since its reformation in the 1930s. He was confirmed by a narrow vote of 48-47.
Concerns have emerged regarding the implications of Miran’s appointment for the Federal Reserve’s independence, particularly in the context of Trump’s efforts to influence the central bank. Miran is set to participate in an important Federal Reserve policy meeting this week, where he will be one of 12 voting members. The meeting is expected to address a potential quarter-percentage point interest rate cut aimed at supporting a weakening labor market.
Miran has publicly supported Trump’s global tariffs and has argued that these import duties will not lead to inflation. He contends that stricter immigration policies could reduce housing demand and lower prices. His confirmation process was expedited, taking only a few weeks rather than the typical months required for Federal Reserve nominees.
Senator Elizabeth Warren expressed concerns that Miran might be viewed as lacking independence and possibly acting at the direction of the president. Trump has been advocating for interest rate cuts to stimulate the U.S. economy, criticizing Fed Chair Jerome Powell for being slow to act on such measures.
Additionally, Trump’s administration is pursuing actions to remove Fed Governor Lisa Cook, citing allegations of mortgage fraud. Cook, the first Black woman to serve in this role, has denied these allegations and is engaged in legal efforts to block her removal. Recently, a U.S. appeals court denied the Justice Department’s request to lift a ruling that temporarily prevents Trump from dismissing Cook.
Source: https://www.bbc.com/news/articles/cgrq5x97qlqo?at_medium=RSS&at_campaign=rss