The Senate narrowly confirmed Stephen Miran, a key economic advisor to President Donald Trump, to a seat on the Federal Reserve's Board of Governors. The 48-47 vote largely fell along party lines, with only Alaska Senator Lisa Murkowski dissenting from the Republican ranks. This appointment grants the White House increased influence over the central bank, a development that has raised concerns among Democrats and some observers about the Fed's long-standing independence from partisan politics.
The confirmation comes just days before the Fed is expected to lower its key interest rate. Miran's nomination has been controversial due to his intention to maintain his position as chair of the White House Council of Economic Advisers while serving on the Fed, albeit on unpaid leave. Senate Democrats argued this arrangement compromises the Fed's neutrality, characterizing Miran as a potential mouthpiece for the Trump administration.
Senate Minority Leader Chuck Schumer voiced strong opposition, stating that Miran lacks the independence required for the role. This assertion is further fueled by Miran's past criticism of the perceived revolving door between the White House and the Fed, a critique he detailed in a paper co-authored with current Treasury Department Chief of Staff Daniel Katz. While Miran affirmed his commitment to independent analysis and decision-making during his Senate Banking Committee hearing, concerns remain.
This appointment adds another layer of complexity to the ongoing power struggle between the Trump administration and the Fed. President Trump previously attempted to remove Fed Governor Lisa Cook, an action challenged in court and ultimately unsuccessful. The Fed's role in navigating the current economic uncertainties, characterized by persistent inflation and weakening hiring, is further complicated by this heightened political influence. Economists predict a slight reduction in the Fed's key interest rate following its upcoming meeting, a decision that will now be influenced by a nominee whose ties to the White House are a source of considerable debate.
---
Originally published at: https://apnews.com/article/federal-reserve-miran-trump-70a09bdf2e10839f35e1596cafe5c415
