Political leaders question Trump's candidate for the Federal Reserve position, sparking concerns about the autonomy of the central bank.
The White House has nominated Stephen Miran, current chairman of the President's Council of Economic Advisers, to fill the vacant seat on the Federal Reserve Board of Governors. If successful, Miran will replace Adriana Kugler, whose term expires early next year. This move, however, has sparked concerns about President Donald Trump's efforts to exert more control over the Federal Reserve.
Senator John Kennedy has warned Miran to "call 'em like you see 'em," emphasising the need for independence in the role. Miran assured Kennedy that he is indeed independently minded and insists he would act independently if confirmed to the Fed role.
However, Senator Elizabeth Warren has expressed concerns about Trump's attempts to undermine the Fed's independence. The nomination comes amidst Trump's ongoing disputes with the Federal Reserve, including his threats to fire Fed Chairman Jerome Powell and his attempts to create a vacancy on the Fed's governing board by firing Lisa Cook.
In a bid to have Miran seated as a Fed governor before the next policy meeting in mid-September, the White House hopes to expedite the confirmation process. Miran plans to take an unpaid leave from his job as an administration economist while at the Fed.
Meanwhile, Cook, who denies mortgage fraud allegations, is challenging her dismissal in court. Her dismissal, along with the potential appointment of Miran, could give Trump a majority on the Fed's governing board.
Senator Kennedy, in a show of support for Miran, referred to him as a "future governor" of the Fed. However, Senators like Warren continue to question Miran's independence, with Sen. Warren recently grilling him on the subject during a Senate hearing.
As the nomination process unfolds, the central bank is expected to cut its benchmark interest rate by a quarter percentage point, in an effort to prop up the softening job market. The future of the Fed and its independence remains a topic of intense debate as the nomination process progresses.
Read also:
- Trump advocates for the withdrawal of two candidates to create a one-on-one mayoral race between him and Mamdani in New York City
- Voting location now active for citizens to cast their ballots.
- Federal clash in California: two legal cases could potentially align, as a notice is published in the Federal Register
- "Local Democrats in the Bronx offering support for Zohran"
