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President Donald Trump’s nominee for a Federal Reserve vacancy indicated during confirmation hearings that he would not resign from his current White House position if confirmed. This stance has sparked concern among Democrats, who fear it would grant the president undue influence over the central bank.
Stephen Miran, the current chief of Trump’s Council of Economic Advisers, informed lawmakers on Thursday that he intended to take a leave of absence from his White House role, given the limited term of the Fed position.
He assured the committee that he would maintain independence if confirmed.
However, he hesitated when Democrats pressed him to publicly acknowledge that Trump lost the 2020 election as a demonstration of his independence.
Miran also avoided questions regarding the president’s claims of fabricated jobs data for political gain, as well as inquiries about his past recommendations for Fed reform, which included warnings against appointing political figures to the board.
Senator Elizabeth Warren, a Democrat, asserted that Miran would be perceived as a “puppet” lacking the credibility to act as an independent voice.
“You have made clear that you will do or say whatever Donald Trump wants,” she stated. “That may work in a political position but it will take an axe to Federal Reserve independence.”
Miran emphasized the “paramount” importance of the central bank’s independence, stating that no one from the White House had requested him to commit “formally or informally” to lowering interest rates.
“The independence of the Federal Reserve is critical to delivering superior long-run outcomes for the economy,” he said.
Miran, an economist trained at Harvard, was nominated by Trump to fulfill the remainder of former governor Adriana Kugler’s term.
Kugler resigned last month, prior to the expiration of her term in January.
This opportunity arises amid Trump’s unprecedented pressure on the Fed to reduce interest rates, including considering the dismissal of chair Jerome Powell and taking steps to remove another board member, Lisa Cook, over mortgage fraud allegations.
Cook has denied these allegations and challenged the president’s termination in court.
Experts argue that Trump’s actions risk undermining the bank’s credibility, which is tasked with maintaining price stability and full employment while operating independently from the White House.
Lawmakers from both parties emphasized to Miran the importance of the bank’s governors determining interest rates without political influence.
While Republicans largely signaled support for his confirmation, Democrats expressed concern that Miran’s decision to retain his White House position suggested he would be susceptible to Trump’s demands.
Senator Jack Reed of Rhode Island described the arrangement as “ridiculous,” and Senator Andy Kim of New Jersey questioned: “Why do you even want this job for four months if you’re just hedging your bets and continuing your role at the White House?”
Miran stated he would resign from his White House post if nominated for a longer term.
Miran’s nomination is expected to proceed to a full Senate vote, where Republicans hold the majority.
Senator John Kennedy, a Republican, urged Miran to disregard political considerations if confirmed.
“You’ve got to call them like you see them and ignore – nothing wrong with people giving their advice – but ignore all the rhetoric,” he said.
Warren argued that Republicans were ignoring the “elephant in the room” by readily approving Miran’s nomination.
“If we allow the Fed to become a political football, every American consumer, every American worker and every American business will pay a long term price,” she said.
Melania Trump has taken a different – and selective – approach to her duties in the White House.
Ladapo announced this week that Florida would seek to end all mandates, including those for schoolchildren
The health secretary clashed with lawmakers as they accused him of restricting Americans’ access to vaccines.
The US health secretary faced questions on Covid deaths and vaccines a week after firing the head of the Centers for Disease Control and Prevention.
Trump has deployed hundreds of troops, some armed, as part of a crackdown on crime and homelessness in the US capital.
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