Stephen Miran, President Donald Trump’s nominee to temporarily serve on the Federal Reserve Board of Governors, committed to preserving the central bank’s independence in testy exchanges with senators.
Trump announced his nomination of Miran, the current head of the White House’s Council of Economic Advisers, early last month to temporarily fill the seat vacated by Adriana Kugler.
Appearing before the Senate Banking Committee for his confirmation hearing, Miran expressed the necessity for monetary policy independence as lawmakers centered their questions on the Federal Reserve’s autonomy.
“In my view, the most important job of the central bank is to prevent depressions and hyperinflations. Independence of monetary policy is a critical element for its success,” he said in his opening remarks on Sept. 4.
“I will act independently as the Federal Reserve always does,” Miran told senators, adding that he welcomes listening to a diverse array of opinions “to challenge my own views and interrogate them.”
Democratic senators, including Sen. Elizabeth Warren (D-Mass.), were unconvinced, stating that Miran would serve as a proxy for the president and erode Fed independence.
Accentuating her point, Warren asked Miran whether he thought Trump had lost the 2020 presidential election and if he believed the Bureau of Labor Statistics’ July jobs numbers had been manipulated.
Miran replied that President Joe Biden “was certified by Congress” and that the federal agency has struggled with deteriorating data quality.
“Dr. Miran, you have made clear that you will do or say whatever Donald Trump wants you to do or say,” Warren, the top Democrat on the committee, said. “That may work in a political position, but it takes an axe to Fed independence, and will make life far more expensive for Americans.”
Sen. Andy Kim (D-N.J.) questioned whether administration officials, “formally or informally,” had asked Miran to vote to lower interest rates.
“No,” Miran answered.
Miran is likely to be confirmed as Republicans control the Senate Banking Committee and hold 53 seats in the upper chamber. All Senate GOP lawmakers voted to confirm Miran, who served in the president’s first term, to chair the president’s key economic advisory group.
Still, many of them encouraged Miran to stay committed to doing what he thinks is right rather than following the wishes of politicians.
“There’s nothing wrong with politicians in Washington offering their opinions. You can’t stop them,” Sen. John Kennedy (R-La.) told Miran. “But we need a monetary plan that was put together by something other than vodka and darts, and that’s what we have the Federal Reserve for.”
His ascent to the Fed Board could happen before the Federal Open Market Committee (FOMC) meets on Sept. 16 and 17. Investors overwhelmingly anticipate that monetary policymakers will vote to lower interest rates by a quarter point for the first time since December. The institution has been on hold this year to determine the potential effects of Trump’s sweeping global tariff plans.
Miran revealed that he would only be taking an unpaid leave of absence from the White House because his term would only last four months. He noted that he would resign if nominated for a longer term.
This sparked further scrutiny from Sen. Jack Reed (D-R.I.), who called it “ridiculous.”
“You are going to be technically an employee of the president of the United States, but an independent member of the board of the Federal Reserve,” Reed said.
Lisa Cook in Focus
The Federal Reserve has captured the spotlight in recent months as the current administration undertakes the early stages of overhauling the century-old institution.
“Setting aside the fact that Governor Cook did not ever commit mortgage fraud, any such pre-office offense plainly would not have been ‘so infamous a nature, as to render the offender unfit to execute any public franchise,’” the attorneys wrote.
“Governor Cook learned of these developments only through the grapevine — no government official gave her notice of these Truth Social posts.”
During the Thursday Senate hearing, several lawmakers came to Cook’s defense, accusing the president of engaging in a political witch hunt.
“She is currently confronting what appears to be an intentional smear campaign and attempted firing,” said Sen. Lisa Blunt Rochester (D-Del.). “In the 111-year history of the Fed, no president has attempted to influence the Fed so blatantly and egregiously as our current president is.”
Sen. Raphael Warnock (D-Ga.) stated that the Fed governor “is simply being scapegoated” for the president’s “failed economic policies.”
