Senate Republicans approved the appointment of Stephen Miran, a senior official from the Trump administration, to the Federal Reserve’s board of governors. This move, made just before the September meeting of the Federal Reserve, consolidates the US president’s influence over the central bank. Miran, who currently leads Donald Trump’s council of economic advisers, will join the governors’ ranks, marking a historic moment where an executive branch member will work at the apex of the central bank.
The Senate’s 48-27 vote in favor of Miran’s appointment happened as a US appeals court declined a Trump administration request to remove Lisa Cook, a governor appointed by Joe Biden, before the two-day policy meeting starting Tuesday. Consequently, Cook will be able to maintain her position during the policy meeting where the Fed is expected to reduce interest rates.
Presidents typically allow the Fed to operate independently without political interference. However, Trump has made it clear that he does not intend to respect this tradition by stating his intention to build a majority on the Fed’s board. Trump and Miran’s cautious interest rate cut approach and his desire for quicker action have sparked concern among economists, who point out that economic indicators such as a stagnant labor market and rising inflation may require careful consideration by policymakers. The Trump administration has also been dismissive of such reports and has fired officials overseeing them, with Miran’s appointment being another controversial decision.
Miran has affirmed the importance of the Fed’s independence and vowed to preserve it as a governor. However, his decision to only take unpaid leave from his current job at the White House rather than resigning raises doubts about his ability to act independently. Instead, the administration is also pushing to remove Cook from the Fed’s board as soon as possible. The US district judge, Jia Cobb, ruled on September 9, against Trump’s unfounded claims of mortgage fraud against Cook, therefore allowing her to maintain her position until 2038. Cook, a highly respected economist, and the first Black woman to sit on the Fed’s board of governors, has denied any wrongdoing and sued the Fed and Trump, arguing that the president lacks the authority to fire her.
Trump has been pressing for lower interest rates, calling on Fed chair Jerome Powell to “MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND.” The latest decision of the Fed is expected to be announced on Wednesday.
Source: https://www.theguardian.com/business/2025/sep/15/stephen-miran-federal-reserve-lisa-cook
