The US Senate confirmed Stephen Miran, a senior Trump administration official, to the Federal Reserve's Board of Governors in a 48-27 vote. This move, occurring just hours before the Fed's September interest rate decision, significantly strengthens the President's influence over the central bank. Miran's appointment is unprecedented in the modern history of the Federal Reserve, marking the first time a sitting member of the executive branch will serve concurrently at the highest levels of the central bank.
This confirmation comes as a US appeals court rejected the Trump administration's attempt to remove Lisa Cook, a Biden appointee, from her position. The court ruling ensures Cook's continued presence during the crucial interest rate deliberations. Cook's removal was sought despite a lack of substantiated evidence supporting the administration's claims of mortgage fraud, allegations she vehemently denies.
Trump's efforts to exert control over the Fed, including his public demands for lower interest rates and criticism of Fed Chair Jerome Powell, have challenged the institution's traditional independence. His repeated attempts to influence monetary policy decisions contrast sharply with the usual presidential practice of allowing the Fed to function without direct political interference. This situation is further complicated by the administration's downplaying of economic reports showing a stagnant labor market and rising inflation, leading to concerns about the basis of their policy decisions.
While Miran affirmed the Fed's independence during his confirmation hearing, his decision to only take unpaid leave from his White House position, rather than resign, has raised questions regarding his capacity for impartial decision-making. This, coupled with the controversial attempt to remove Cook, raises broader concerns about the potential for political influence on monetary policy.
The impending Fed decision on interest rates, to be announced on Wednesday, will be closely watched, given the recent political maneuvering and the ongoing debate surrounding the central bank's independence and its response to current economic indicators. Trump, reiterating his demands for immediate and substantial interest rate cuts, added fuel to the fire through a post on his social media platform, predicting a housing market boom as a consequence of lower rates.
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Originally published at: https://www.theguardian.com/business/2025/sep/15/stephen-miran-federal-reserve-lisa-cook
