The US Senate Banking Committee has voted along party lines to support the nomination of Donald Trump adviser Stephen Miran for a short-term position as a Federal Reserve governor. The 13-11 vote advances Miran toward a confirmation vote in the full Senate, potentially as early as Monday. This timeline positions him to be seated before the Federal Open Market Committee (FOMC) meets on September 16 and 17.
The FOMC is expected to cut interest rates for the first time since December, amidst concerns about weakening job growth. Miran, who chairs the White House Council of Economic Advisers, stated he would take an unpaid leave of absence to serve at the Fed. His future role after the temporary post remains uncertain, with no clarity on whether Trump will nominate him for a full 14-year term or request his return to the White House.
Democrats have criticised the arrangement, questioning Miran’s independence from Trump given the president’s control over his potential future at the Fed or in the White House. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. It conducts the nation’s monetary policy by influencing money and credit conditions in the economy to achieve full employment and stable prices.
In a separate matter, the US Justice Department is appealing a judge’s decision that temporarily prevents Trump from removing Federal Reserve governor Lisa Cook over allegations of mortgage fraud. The government filed a notice to appeal to the federal appeals court in Washington, seeking to overturn the September 9 ruling by US District Judge Jia Cobb, who determined that Trump likely lacked sufficient “cause” under the Federal Reserve Act to fire Cook. The appeals court’s timeline for ruling on the appeal remains unclear.
