Trump's Federal Reserve nominee faces senators for confirmation hearing

WASHINGTON (TNND) — President Donald Trump’s selection to join the Federal Reserve’s board of governors will face senators on Thursday and try to persuade them that he supports the central bank’s independence amid an avalanche of criticism from the White House and an unprecedented attempt to fire another governor.

Stephen Miran, a top economic advisor to Trump, told lawmakers that he supports the Fed’s ability to operate and make policy decisions without political interference.

“In my view, the most important job of the central bank is to prevent Depressions and hyperinflations. Independence of monetary policy is a critical element for its success,” he said. “The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability.”

In his remarks, Miran said policy decisions would be based on “analysis of the macroeconomy and what’s best for its long-term stewardship,” and that he would abide by the goals for the Fed set by Congress in a reference to its dual mandate of stable prices and maximum employment.

“Given the central bank’s outsized role in the economy, it’s no surprise that outsiders have opined on its decisions for decades,” Miran said. “However, if confirmed, I plan to dutifully carry out my role pursuant to the mandates assigned by Congress.”

Concerns about the Fed’s independence from politics have flared up as the president and other administration officials have frequently hammered chairman Jerome Powell and the central bank for not cutting rates yet this year, which Trump argues would boost the economy and lower the cost of servicing the nation’s debt. Rates have been unchanged for the last five meetings as officials have tried to figure out whether Trump’s tariffs will have a lasting impact on inflation.

Trump is also trying to fire Fed governor Lisa Cook over allegations of mortgage fraud in a move that has sparked an unprecedented legal battle over whether she can be removed from her post. Cook has denied the allegations and sued the administration to stay on the Fed.

The White House has pushed the Republican majority in the Senate to fast-track Miran’s confirmation to the Fed in time for its Federal Open Markets Committee meeting later this month. If confirmed, he would add another pro-rate cut voice to the seven-member board.

Democrats have blasted the administration over the president’s efforts to reshape the Fed and said Miran would not serve as a governor free from political influence.

“No one — not the American public, not investors here at home, not the worldwide financial markets — will trust him as an independent voice,” said Sen. Elizabeth Warren, D-Mass. “Every claim he makes and every vote he takes will be tainted with the suspicion that he isn’t an honest broker, but that he is Donald Trump’s puppet.”

Miran’s indication that he would not resign from his current post on the White House economic council furthered Democratic concerns about his independence as a Fed governor. Citing the advice of legal counsel, Miran said he would only be taking an unpaid leave of absence because his term on the Fed will only last a few months.

“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,” said Sen. Jack Reed, D-R.I. “That’s ridiculous.”

Miran would finish out the term of former governor Adriana Kugler, who unexpectedly resigned last month for a term that runs through January. The White House has said it will nominate someone else to serve once Kugler’s term runs out.

Economists and Wall Street investors are already broadly anticipating a 0.25% cut at the Sept. 16-17 meeting after Powell and other officials signaled concerns about a stalling labor market are outweighing the inflationary effects of tariffs.