In a notable move aligning with the Trump administration’s economic agenda, Senate Republicans voted on Monday to confirm Stephen Miran, a senior official from the previous presidential administration, as a member of the Federal Reserve’s board of governors. The vote concluded with a tally of 48 to 27, just ahead of the Fed’s crucial September meeting to deliberate on interest rates.
Miran, who previously served as chair of Trump’s Council of Economic Advisers, will now hold a position that uniquely merges executive branch influence with the Federal Reserve, a central bank that has traditionally maintained a degree of independence from political pressures. This appointment comes amid the backdrop of a U.S. appeals court rejecting the Trump administration’s effort to dismiss Lisa Cook, a governor appointed by Joe Biden. The dismissal was sought just days before the Fed’s policy meeting, although the court ruled that Cook can remain in her position during the critical discussions on interest rates.
This judicial decision is significant, considering that the Fed is widely expected to implement interest rate cuts in light of mixed economic signals, including signs of labor market stagnation and rising inflation. Trump’s history of challenging the independence of the Fed is evident in his public requests for aggressive rate cuts and criticism directed toward senior Fed officials, including Chairman Jerome Powell.
Despite asserting the importance of the Fed’s independence during his confirmation hearing, Miran’s choice to take an unpaid leave from his White House role rather than resign has raised concerns about his ability to operate without political influence. Meanwhile, the Trump administration is seeking to expedite Cook’s removal from the Fed board, although her legal actions—aimed at contesting Trump’s unfounded allegations of mortgage fraud—complicate these efforts. A ruling earlier this month indicated that Trump could not simply terminate Cook without valid cause, an act that is defined by law as requiring substantiated grounds.
Cook, who has a distinguished background as an economist with affiliations to prestigious universities, is the first Black woman to serve on the Federal Reserve’s board. In August, she brought a lawsuit against the Fed and Trump, arguing that his attempts to fire her stemmed from her monetary policy positions.
Earlier on the same day as the Senate vote, Trump amplified his call for lower interest rates via social media, suggesting that such a move would spur significant growth in the housing market. The upcoming Fed decision, set to be unveiled on Wednesday, will undoubtedly be closely monitored as it takes place in this politically charged context.
