Trump nominee Miran confirmed to Fed ahead of rate decision
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Newly confirmed Federal Reserve governor Stephen Miran. Photo: Daniel Heuer/Bloomberg via Getty Images
The Senate confirmed Stephen Miran to be a Federal Reserve governor on Monday, securing the post for a Trump loyalist just hours before the Fed meets to debate cutting interest rates.
Why it matters: President Trump has demanded lower interest rates from the Fed, and Miran is likely to make that case immediately.
Driving the news: The Senate voted 48-47 mostly along party lines to confirm Miran, with Sen. Lisa Murkowski (R-Alaska) joining Democrats in voting against the confirmation.
- It was a lightning-fast confirmation process, aimed at installing Miran before the much-scrutinized policy meeting that starts Tuesday morning and concludes Wednesday.
- It has been just over five weeks since Trump nominated Miran to the Fed board, after Biden appointee Adriana Kugler unexpectedly resigned.
- The term is set to expire in January, though Miran could occupy the slot for longer if another appointee is not confirmed by then.
The intrigue: Miran has said he will not resign from his White House job, where he served as the chair of the Council of Economic Advisers, but rather go on unpaid leave. That unprecedented decision has caused uproar among Democrats.
- "I have received advice from counsel that what is required is an unpaid leave of absence from the Council of Economic Advisers," Miran said at a hearing earlier this month.
- "Considering the term for which I'm being nominated is a little bit more than four months, that is what I will be taking," Miran added.
- Miran has been critical of what he describes as a revolving door between the White House and the Fed.
What to watch: Miran's confirmation comes hours before the Fed begins its policy meeting.
- The policy-setting Federal Open Market Committee is expected to cut rates for the first time this year on Wednesday, though only by a quarter-percentage point — not the massive amount Trump has demanded.
Between the lines: During his confirmation hearing, Miran said no one at the White House made him commit to lower interest rates.
- Still, Miran might defy the norms of a typical Fed governor. In the past, he has accused the Fed of groupthink.
- It's possible that Miran could dissent at Tuesday's meeting, preferring the Fed cut rates by more than the quarter-point that is widely expected.
The bottom line: The Trump 2.0 era has arrived at the Fed, putting its closely defended political independence into question.
