Fed, Trump wants to put his economic adviser Miran on the board
For a vacancy on the board of the central bank, the president's close advisor, who will also remain in the White House, is nominated
2' min read
2' min read
Trump is increasingly determined to take over the reins of the Federal Reserve: his nominee for a vacancy on the Federal Reserve board, close advisor Stephen Miran, has made it known that he intends to retain his position in the White House even after a confirmation at the central bank. An unprecedented dual appointment immediately denounced by critics as emblematic of the attempted erosion of the Fed's independence and credibility.
Miran has to be confirmed by the Senate but the Republican majority did not seem to raise any objections. So far he has led the White House Council of Economic Advisers and has indicated that he will only take a temporary, unpaid leave of absence from his chair alongside the President. A quick parliamentary approval would see him attend the Fed summit on 16 and 17 September when an interest rate cut, which Trump is calling for aggressively, is at stake.
If this is the case, it would be the first time since the birth of the modern US central bank in the 1930s that an incumbent of the executive branch enters the monetary policy decision-making bodies. With inevitable conflicts of interest: beyond ideological affinities, Trump would retain a strong influence over a governor who remains de facto in his employ. Democratic Senator Jack Reed called Miran's role 'ridiculous'.
It is not the only potential change to shake up the Fed: the administration has stepped up its campaign to replace another governor on the board, Lisa Cook. The Justice Department has opened a criminal investigation into the allegation that she falsified mortgage documents, a reason cited as 'just cause' by Trump for her unprecedented dismissal. Cook has filed an appeal. At least three members of the Trump administration, ProPublica revealed, allegedly committed the infractions now attributed to Cook by listing multiple properties as his first home: Transportation Secretary Sean Duffy, Labor Secretary Lori Chavez-DeRemer, and Environment Secretary Lee Zeldin.
The advent of Miran and an ouster of Cook would see Trump win a majority of the seven seats on the Fed board. Two governors are already his appointees and have come out in support of the President's demands. The seven governors on the board are the heart of the FOMC, which decides on rates and also includes four members of the Fed's regional offices on a rotating basis. Miran is appointed today to complete a term ending in January made available by early resignation; if confirmed for a further term he has said he will leave the White House.
