WASHINGTON: The US Senate will vote late Monday on confirming President Donald Trump’s nominee Stephen Miran to the Federal Reserve board.
Miran currently chairs the White House Council of Economic Advisers and would become one of twelve voting members on the interest rate-setting panel.
Federal Open Market Committee policymakers begin their crucial two-day meeting on Tuesday morning.
Trump has intensified pressure on the independent central bank to slash interest rates, frequently citing low inflation figures.
The president has taken additional actions that critics fear threaten the Fed’s political independence.
Trump nominated White House economist Miran to fill the vacancy created by Fed Governor Adriana Kugler’s early August resignation.
Trump also moved to fire another governor, Lisa Cook, in August over mortgage fraud allegations.
A federal judge temporarily blocked Cook’s removal as her legal challenge against Trump proceeds through courts.
Cook will likely participate in this week’s FOMC meeting unless Trump succeeds in appealing the ruling.
Her lawsuit’s eventual outcome could have significant implications for the Federal Reserve’s future.
The Fed is widely expected to lower the benchmark lending rate by 25 basis points on Wednesday.
Trump reiterated his call for a major rate cut Monday on his Truth Social platform.
He demanded Fed Chair Jerome Powell implement immediate and larger reductions than planned.
All eyes will focus on Powell’s post-decision remarks Wednesday afternoon for hints about future rate cuts.
Miran appears poised to clear confirmation in the Republican-majority Senate despite Democratic concerns.
Lawmakers worry about Miran taking leave from the CEA rather than resigning his White House position.
Miran attributed this decision to his short tenure of just over four months at the council.
He holds a PhD in economics from Harvard University and served as a senior Treasury advisor during Trump’s first term.
Miran later joined conservative think-tank the Manhattan Institute, writing commentaries on Fed reform issues. – AFP
