Senate panel backs Trump’s Fed nominee Stephen Miran

Stephen Miran moved a step closer to a seat on the Federal Reserve’s Board of Governors after the Senate Banking Committee approved his nomination in a tight vote.

Breitbart reported that the committee advanced Miran’s nomination by a 13-11 margin along party lines, setting up a full Senate vote that could install him in time to help decide on an expected interest rate cut at next week’s Federal Open Market Committee meeting.

Miran, currently serving as chair of the White House Council of Economic Advisers, is President Donald Trump’s pick for a short-term appointment to the central bank’s governing board. His nomination is meant to complete the unfinished term of Andrea Kugler, which expires in January.

Committee Vote Highlights Political Divide

The committee’s vote was narrow and reflected a partisan split, with Republicans supporting Miran and Democrats opposing him. Lawmakers weighed both his qualifications and potential conflicts of interest due to his White House role.

If approved by the full Senate, Miran would immediately participate in the September 16–17 Federal Open Market Committee session. That meeting is widely anticipated to result in a decision to lower benchmark interest rates.

At his confirmation hearing, Miran sought to address concerns over his White House ties, stating that he would take an unpaid leave of absence while serving on the Federal Reserve board.

Concerns About Fed Independence

Democratic senators questioned whether Miran’s close connection to the Trump administration could undercut the central bank’s independence. They argued that maintaining a firewall between the Fed and the White House is essential for monetary policy credibility.

Miran countered that by stepping away from his role at the Council of Economic Advisers, he would avoid any conflict that could affect his judgment in setting monetary policy. His pledge was intended to reassure lawmakers wary of political influence.

The temporary appointment would last only until January, when Kugler’s term ends. At that point, Miran could be nominated again, this time for a full 14-year term requiring another round of Senate consideration.

Potential Long-Term Path at the Fed

The Trump administration has signaled that Miran may be in line for a longer tenure if the short-term role goes smoothly. Such a move would require fresh approval from the Senate, and it could spark another round of debate about his ties to the administration.

Another possibility under consideration is a separate nomination for the Federal Reserve chairmanship once Jerome Powell’s current term expires. Trump has been critical of Powell in the past, and speculation about his eventual replacement has persisted.

For now, the immediate focus is on Miran’s short-term role and his potential impact on the upcoming policy meeting, which comes at a pivotal moment for the U.S. economy.

Implications for Monetary Policy

The September FOMC meeting is expected to deliver a reduction in interest rates, a move that the Trump administration has strongly encouraged. Having Miran on the board in time for the decision could add another voice aligned with the administration’s push for looser monetary policy.

Critics argue that lowering rates too aggressively could risk fueling inflation or creating asset bubbles. Supporters counter that easing borrowing costs could sustain growth amid global economic uncertainty.

Miran’s confirmation would give him a vote on these pressing matters almost immediately, making the Senate’s decision particularly consequential.

Next Steps in the Confirmation Process

The full Senate is scheduled to vote on Miran’s nomination on Monday. A simple majority is required for approval, and with Republicans holding a slim edge, the outcome is likely to fall along party lines.

If confirmed, Miran would be sworn in ahead of the September 16 meeting, allowing him to participate in deliberations and cast his first vote on monetary policy within days of assuming office.

The short time frame underscores the urgency of the confirmation process and the high stakes of the Fed’s next policy decision.