The Senate on Monday confirmed economist and Trump adviser Stephen Miran to the Federal Reserve’s Board of Governors, giving President Trump more influence over the Fed just one day before central bank officials will meet to decide whether to cut interest rates.
Miran was confirmed 48-47 for a term that runs until January, filling a vacancy created last month when Biden appointee Adriana Kugler stepped down before the end of her term. Miran currently chairs the White House’s Council of Economic Advisers. In an unusual move, he’s said he will take an unpaid leave of absence from that job while serving on the Fed board instead of resigning altogether, citing “the short duration of the appointment.”
Miran is arriving at the central bank in time for a crucial Federal Open Market Committee meeting on Tuesday and Wednesday, during which 12 top Fed officials — including Miran — will discuss monetary policy and decide whether to change the Fed’s target interest rate. The committee is widely expected to vote for a rate cut, after leaving rates stable so far this year.
Mr. Trump has criticized Fed officials for not cutting interest rates sooner, nicknaming Fed Chair Jerome Powell “Mr. Too Late” — pressuring a central bank that typically operates independently. The president favors a rate cut because it could boost economic growth and slash borrowing costs for American consumers, but the move could risk causing inflation to heat up.
The Senate Banking Committee advanced Miran’s nomination in a party-line vote last week, after lawmakers grilled him on whether he would preserve the Fed’s independence.
Democratic Sen. Elizabeth Warren of Massachusetts, the committee’s top Democrat, alleged last week Miran’s nomination was part of a gambit by Mr. Trump to “seize personal control of the Fed,” citing his decision not to fully resign from his White House role.
“He will have zero credibility with markets, zero credibility with businesses, and zero credibility with the public if he is confirmed to the Board under these circumstances,” Warren said.
But Republican Sen. Tim Scott of South Carolina, who chairs the committee, lauded Miran, saying he “brings deep experience, proven leadership and a clear commitment to ensuring that the American economy remains strong and competitive.”
Miran said in a hearing earlier this month he believes the “independence of monetary policy is a critical element for [the Fed’s] success,” and “I intend to preserve that independence.”
Miran also said he would “absolutely resign” from the Council of Economic Advisers if he is confirmed to a longer term on the Fed board after his four-month appointment runs out.
In a written questionnaire for senators, Miran didn’t rule out attending meetings for the White House’s Council of Economic Advisers and consulting with CEA staff, but “only in my capacity as a member of the Fed and to the extent appropriate for a member of the Fed in the normal course of business.” He also said he will not have access to his CEA email while at the Fed.
The Miran nomination is just one move by Mr. Trump that could reshape the central bank.
The president moved to fire Fed board member Lisa Cook last month, accusing her of making false statements on mortgage documents. Cook argued the firing was unlawful, and a judge ruled last week that Cook can remain on the board while a lawsuit plays out. The Trump administration asked an appeals court to halt that ruling before this week’s interest rate meeting.
Mr. Trump will also have an opportunity to pick a new Fed chair when Powell’s term ends in May. The president has floated firing Powell before then, but the idea is legally untested.
Two other Fed board members — Christopher Waller and Michelle Bowman — were confirmed during Mr. Trump’s first term. If the president succeeds in firing Cook and replacing Powell and Kugler, five of the Fed Board of Governor’s seven members will be Trump nominees.
