Senate to Confirm Trump Ally Miran as Fed Governor Ahead of Key Rate Vote

Senate Confirms Stephen Miran to Federal Reserve Board

The Senate is expected to officially confirm Stephen Miran as President Trump's nominee to the Federal Reserve Board on Monday night. This confirmation will place him in position just in time to cast a critical vote during this week’s central bank policy meeting on Tuesday and Wednesday.

Miran will replace former Fed governor Adriana Kugler, who left the Fed in August. Her departure provided Trump with an opportunity to influence the central bank further. The Fed is anticipated to lower its benchmark interest rate for the first time this year by a quarter percentage point at the conclusion of its meeting on Wednesday afternoon.

Trump has been advocating for a larger reduction, and it remains uncertain whether Miran would dissent if the central bank decides on a 25 basis point cut. Miran's confirmation is part of a broader strategy by the president to fill the Fed with individuals who support lower interest rates.

Trump's Attempt to Remove Another Fed Governor

Trump has also tried to remove another Fed governor, Lisa Cook, citing allegations that she misrepresented properties she purchased as primary residences, which could have led to more favorable financial loan terms. However, recent findings over the weekend revealed that a condo Cook bought in June 2021 was listed as a "vacation home" in a loan estimate. This detail may weaken the Trump administration's claims of mortgage fraud.

Cook has requested a US district court to reject Trump's emergency request, which would allow the president to remove her from the Fed. US District Judge Jia Cobb ruled last week that Cook could remain on the Fed's board while challenging the president's firing, stating that the Trump administration had not demonstrated valid cause for her removal or respected her right to due process.

As of now, Cook remains on the board and will attend the Fed policy meeting, which starts on Tuesday morning. The Trump administration has asked an appeals court to overturn this decision.

Concerns About Fed Independence

The attempts to remove Cook and Miran's appointment have raised concerns about the potential threat to central bank independence. During his confirmation hearing before the Senate Banking Committee, Miran assured lawmakers that he would act independently if confirmed. However, he does not plan to resign from his current role as chair of the Council of Economic Advisers.

Instead, he intends to take a leave of absence from the White House to serve on the central bank and return after his term ends. Democrats on the Banking Committee have urged him to resign from his White House job if he is confirmed to the Fed, a request Miran has not committed to fulfilling.

Senator Elizabeth Warren Questions Miran's Stance

Ahead of the Senate's final vote, the ranking Democratic member of the Senate Banking Committee, Sen. Elizabeth Warren (D-Mass.), sent Miran a letter questioning his stance on inflation. She asked him about his reaction to August inflation data as measured by the Consumer Price Index.

The Consumer Price Index showed that "core" prices, excluding volatile food and energy prices, rose 3.1% in August, exceeding the Fed's target of 2%. Warren noted that as the Senate prepares to vote on Miran's nomination, his response to the August CPI numbers will help inform lawmakers about whether he will be an independent voice on the Fed Board or continue as a spokesperson for President Trump.

Warren also asked Miran if he believes the Trump administration's tariffs contributed to the increase in consumer prices in August and whether he agrees with the president that there is no inflation.

Balancing Inflation and Employment

Despite inflation running about a full percentage point above the Fed's target, Fed Chair Jerome Powell has indicated that inflation from tariffs is likely a one-time price increase. Weakening job growth has prompted Powell and other Fed officials to consider a rate cut as a way to address the other side of its dual mandate: maintaining stable prices and maximizing employment.

Miran has previously advocated for reforms to recalibrate the Fed's governance to ensure it remains insulated from day-to-day politics while enhancing its accountability and democratic legitimacy. In an essay last March for the Manhattan Institute, Miran called for increasing the president's oversight of the Fed, shortening governors' 14-year terms, and imposing bans on what he referred to as the revolving door between the executive branch and the Fed.

He also proposed that Fed members should be prohibited from serving in the executive branch for four years after their term ends. Additionally, Miran suggested nationalizing the 12 regional Federal Reserve banks and giving state governors in their districts the power to select each regional Fed's board of directors, which would then select the president of the regional Fed bank.