Miran

Sept. 15 (UPI) — Senate Republicans on Monday confirmed White House economic adviser Stephen Miran to join the Federal Reserve Board despite staunch Democratic concerns about his independence.

The Senate voted 48-47 mostly along party lines to narrowly approve Miran’s nomination to serve as governor on the Federal Reserve Board, an independent nonpartisan agency that has been targeted by the Trump administration as it seeks to consolidate federal government power.

He will fill the remainder of Adriana Kugler’s 14-year term, which is set to expire in January.

As one of seven Fed governors, Miran will be a key economic policymaker, voting on the country’s monetary policy, including U.S. interest rates, which President Donald Trump has been calling to be lowered for much of his second term.

Democrats have been in vocal opposition to Miran’s nomination, saying his appointment to the board would undermine its independence due to his loyalty to Trump and the fact that he will remain chair of the White House Council of Economic Advisers.

“Stephen Miran isn’t being nominated to help families. He’s being put on the Fed to do Trump’s bidding,” Sen. Ruben Gallego, D-Arizona, said in a statement defending his “no” vote.

“He’ll do whatever helps Trump politically and leave us all with higher prices and a bad job market.”

Republicans backed the nomination, with the GOP-led U.S. Senate Banking Committee Chairman Tim Scott, R-S.C., saying it is “a win” for the American people.

“He brings deep experience, proven leadership and a clear commitment to ensuring the American economy remains strong and competitive. I am confident Dr. Miran will act in an independent manner,” Scott said in a statement.

The Senate took up the vote Monday after the Senate Banking Committee earlier in the day voted to advance Miran’s nomination for the seat left vacant by Kugler, a Biden nominee, who abruptly resigned.

Miran said during the committee hearing that he would take a leave of absence from his position at the White House while finishing the remainder of Kugler’s term. That unusual arrangement and Trump’s pressure campaign to get the Fed to lower interest rates has stoked concern about the independence of the central bank.

“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?” Sen. Jack Reed, D-Rhode Island, said during the hearing. “That’s ridiculous.”

Miran said during the hearing that his thinking process would be independent while serving on the board. Sen. John Kennedy, R-La., replied that they would hold him to that.

Sen. Andy Kim, D-N.J., said in a recorded statement before the Senate vote that if Miran is confirmed he will call for him to resign as Trump’s chief economic advisor.

“He cannot have someone simultaneously working for the White House, working directly under Donald Trump, and sitting on the board of the Federal Reserve,” he said, adding that several of his Republican colleagues have told him that they are also “very uncomfortable” with arrangement.

“If he wants to go, he has to resign his position at the White House.”

The Fed is expected to begin discussions on interest rates Tuesday.

Federal Reserve Chair Jerome Powell has been reluctant to lower the cost of borrowing despite sharp criticism and insults by Trump, who is viewed as seeking to undermine the central bank’s independence.

Trump has attempted to fire Federal Reserve Governor Lisa Cook, alleging she committed mortgage fraud. A judge earlier found the charge to be unfounded and ordered her to be reinstated.

Miran, who currently sits on the White House’s Council of Economic Advisers, has advocated for a far-reaching overhaul of Fed governance.

United States President Donald Trump has said he will nominate Stephen Miran, a top economic adviser to the US Federal Reserve’s board of governors, for four months, temporarily filling a vacancy while continuing his search for a longer-term appointment.

The president announced his decision on Thursday.

Miran, the chair of the White House’s Council of Economic Advisers, would fill a seat vacated by Governor Adriana Kugler, a Biden appointee who is stepping down Friday. Kugler is returning to her tenured professorship at Georgetown University.

The term expires January 31, 2026, and is subject to approval by the Senate. Trump said the White House continues to search for someone to fill the 14-year Fed board seat that opens on February 1.

Miran, who served as an economic adviser in the Department of the Treasury during the first Trump administration, has advocated for a far-reaching overhaul of Fed governance that would include shortening board member terms, putting them under the clear control of the president, and ending the “revolving door” between the executive branch and the Fed and nationalising the Fed’s 12 regional banks.

The appointment is Trump’s first opportunity to exert more control over the Fed, one of the few remaining federal agencies that is still independent. Trump has relentlessly criticised the current chair, Jerome Powell, for keeping short-term interest rates unchanged – a major point of contention between the White House and the central bank.

Miran has been a major defender of Trump’s income tax cuts and tariff hikes, arguing that the combination will generate enough economic growth to reduce budget deficits. He has also played down the risk that Trump’s tariffs will generate higher inflation, a major source of concern for Powell.

Trump has unsuccessfully pressured Fed policymakers – who include Powell, his six fellow board members and the 12 Fed bank presidents – to lower rates. Appointing Miran to the central bank, even in a placeholder role, gives the president a potentially more direct route to pursue his desire for easier monetary policy.

‘Trump loyalist’

It is unclear how much time Miran would have at the Fed to try to deploy his ideas, or even vote on interest rates, though.

All Fed nominees require Senate confirmation, a process that includes a hearing before the Senate Banking Committee, a vote from that panel advancing the nomination and a series of floor votes before the full Senate, where Democrats have been slowing the pace of approval for Trump appointments.

“Stephen Miran is a Trump loyalist and one of the chief architects of the President’s chaotic tariff policy that has hurt Americans’ wallets,” the Senate Banking Committee’s top-ranking Democrat, Elizabeth Warren, said on X following the announcement. “I’ll have tough questions for him about whether he’d serve the American people or merely serve Donald Trump.”

The Senate is on summer recess until September 2.

There are just four policy-setting meetings, including one on September 16-17, before the end of what would be Miran’s term.

Fed policymakers kept the policy rate in its current 4.25 percent to 4.5 percent range at their July meeting, with Powell citing somewhat elevated inflation and the concern that Trump’s tariffs could keep it that way as reasons to keep policy restrictive.

Several central bankers this month have raised concerns about labour market weakness, and at least a couple have expressed renewed confidence that tariffs may not push up inflation as much as earlier thought. Those views echo the arguments made by two Fed governors who last month dissented on the decision to leave policy on hold.