Trump’s Fed nominee Miran says he won’t resign from WH post unless given longer term
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The news: Stephen Miran, a White House economic adviser to the Trump administration and Donald Trump's nominee to the Federal Reserve Board, told the Senate Banking Committee he would take unpaid leave from the administration if confirmed, instead of resigning.
Such an arrangement would make him the first modern-day Fed governor to maintain such close ties to the White House.
The context: Miran is known for advocating greater presidential influence over the Federal Reserve, including past proposals to overhaul its structure and voting rules to give the White House more control over monetary policy.
He currently serves as chairman of the White House Council of Economic Advisers, a role to which he was previously confirmed by Senate Republicans without Democratic support.
With Republicans holding a 53 to 47 Senate majority and showing no signs of opposition during the hearing, Miran is widely expected to be confirmed to the Federal Reserve Board before the Fed’s September 16–17 meeting, as requested by Trump.
Trump nominated Miran to serve on the Fed board through 31 January to fill a seat vacated by Adriana Kugler in August. Trump has, however, floated the idea of keeping him on the post for longer, potentially reassigning him to Lisa Cook’s seat if the courts uphold her removal.
Miran said he would resign from the White House only if appointed to a longer term.
When asked by the committee, Miran repeatedly said he supports Fed independence but declined to directly address past positions on allowing presidents to fire Fed officials.
The hearing took place as Trump intensifies efforts to assert control over the Federal Reserve, including the unprecedented move to fire Governor Lisa Cook and his stated aim to install a majority of loyalists on the board.
News of a US Justice Department criminal mortgage fraud investigation into Fed Governor Lisa Cook emerged as Miran testified before the Senate, following a referral from Trump-appointed FHFA Director Bill Pulte. The probe involves grand jury subpoenas in Georgia and Michigan, Reuters reported, and focuses on allegations that Cook listed multiple properties as her primary residence to secure better mortgage terms. The case, which could reach the Supreme Court, has heightened concerns about political pressure on the central bank and its ability to set interest rates independently.
What they said: “Deep down even my Republican colleagues know that a presidential takeover of the Fed is a recipe for disaster,” Democratic Senator Elizabeth Warren said at the hearing.
During the hearing and in prepared remarks, Miran said the Fed should operate independent from politics.
“The president has had a series of excellent calls on monetary policy over the last few years however I think independence of the central bank from the political cycle is key to its long term success in deliver superior economics,” he said at the hearing.
The sources: Bloomberg, The Hill , The Washington Post
