Senate Confirms Stephen Miran to Federal Reserve Board Before Key Rate Meeting

WASHINGTON, D.C. (AP) — The Senate confirmed Stephen Miran as a member of the Federal Reserve Board late Monday, just one day before the central bank’s meeting to consider cutting interest rates. Miran’s confirmation, passed by a narrow 48-47 vote, allows him to participate in this highly anticipated Federal Open Market Committee meeting in Washington.

The vote largely followed party lines, with Republican Senator Lisa Murkowski from Alaska joining Democrats to oppose Miran’s confirmation. Miran, who is currently the chairman of the White House Council of Economic Advisers, indicated during his hearing that he would take a leave from that role but has not committed to a complete resignation.

Concerns have risen among Democrats and economists over the potential threat to the Fed’s independence with Miran simultaneously working for the White House. The Fed is expected to announce a rate cut for the first time since December 2024, although doubts linger regarding the extent of any reduction.

Fed Chair Jerome Powell has resisted pressure from President Trump to lower borrowing costs. However, he acknowledged that current economic conditions, driven by uncertainties from Trump’s tariffs, might justify rate cuts during the meeting. Despite Miran’s fast-tracked confirmation, he may not command a decisive vote on rate cuts this week, as a recent meeting saw members voting to keep rates steady.

Trump has advocated for a larger rate cut, calling for significant reductions in his social media posts. Critics argue that having Miran on the board while serving as a White House aide undermines the Fed’s independence. Elizabeth Warren, the Ranking Member, stated that having Miran in both roles poses a conflict.

Moreover, the confirmation comes amid President Trump’s efforts to remove Fed Governor Lisa Cook from her position, alleging mortgage fraud. Cook has challenged the administration’s removal attempt in court, arguing that the reasons provided do not meet legal standards for dismissal.

In an emergency appeal, the Trump administration has requested that a federal appeals court reverse a ruling that blocks Cook’s removal before the Fed’s upcoming meeting, which could alter the dynamics of the board significantly. As the Fed prepares for the rate-setting gathering, the stakes remain high for all parties involved.