The independence of the Federal Reserve faces fresh scrutiny after Monday's vote
Stephen Miran, one of president Donald Trump’s top economic advisers, was confirmed Monday by the Senate to the Federal Reserve Board of Governors, just hours before the central bank convenes for a key policy meeting.
The Senate voted 48-47 to approve Miran’s nomination, with Sen. Lisa Murkowski, R-Alaska, joining Democrats in opposition. The confirmation places Miran, who also serves as chair of the White House Council of Economic Advisers, among the 12 officials who vote on interest rate decisions. He will fill the remainder of former governor Adriana Kugler’s term, which ends in January 2026.
Miran said he will take unpaid leave from his White House post while serving at the Fed, but he has stopped short of resigning entirely. That dual role has fueled criticism that the Trump administration is eroding the central bank’s independence, which by law and tradition has remained nonpartisan since its founding in 1913.
For the first time in its 111-year history, a member of the Fed’s Board of Governors is also technically an employee of the president, CNN reported. During his Senate confirmation hearing, Miran maintained that he was advised by counsel that the arrangement is legal and pledged to carry out [his] duties as a Fed governor independently.
The confirmation comes at a pivotal moment for the economy. The US labor market is weakening as Trump’s tariffs drive up some prices, challenging both sides of the Fed’s dual mandate: maximum employment and stable prices. The central bank is expected to consider its first rate cut since December 2024 when it meets Tuesday.
Rate cuts highly expected
Markets are anticipating a quarter-point reduction, though Trump has publicly urged a steeper cut. On Monday, he wrote on Truth Social that chair Jerome Powell “MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!” CNBC reported.
Miran told senators he believes Fed independence “is critical to the well functioning of the economy and financial markets.” He also said he will comply with ethics rules and federal law while serving on the board.
Democrats remain skeptical. Senate Banking Committee ranking member Elizabeth Warren, D-Mass., said before the vote that “one day of serving as the president’s chief economist and a supposedly independent governor at the Fed would be one day too many.”
Miran’s confirmation coincided with a separate development involving the central bank: a federal appeals court ruled Monday that Trump cannot remove Fed governor Lisa Cook ahead of this week’s meeting.
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