Senate Banking Panel Advances Trump Fed Nominee Stephen Miran in Party-Line Vote
Stephen Miran, White House Council of Economic Advisers chair, moves to full Senate as debate over Fed independence and pressure on interest rates intensifies ahead of September policy meeting
The Senate Banking Committee voted 13-11 along party lines Wednesday to advance President Donald Trump’s nominee to the Federal Reserve’s Board of Governors, Stephen Miran, sending the nomination to the full Senate ahead of the Fed’s policy meeting next week.
Miran, the chair of the White House Council of Economic Advisers, was tapped by Trump to fill the seat vacated by Adriana Kugler, a Biden appointee who abruptly stepped down last month. If confirmed by the full Senate, Miran would serve through the scheduled end of Kugler’s term on Jan. 31 and has said he would take an unpaid leave of absence from the CEA while on the Federal Reserve board.
The committee action comes as President Trump has publicly and repeatedly pressured the Fed to lower its benchmark interest rate, a stance that has put his administration at odds with central bank officials who cite concerns about inflationary risks and economic uncertainty tied to trade policy.
"Just out: No Inflation!!! 'Too Late' must lower the RATE, BIG, right now," Trump wrote on Truth Social on Wednesday, a post that echoed long-standing demands from the White House for easier monetary policy. The president has argued that inflation is under control and that there is no reason to keep interest rates elevated, while also acknowledging that he could nominate a different replacement when Miran’s interim term ends in January.
Critics, largely Democrats on the Senate panel, objected to the nomination and to Miran’s plan to remain on unpaid leave from the CEA rather than resigning that post. They said his appointment would blur longstanding efforts to preserve the Fed’s independence from political influence over monetary policy. Democrats also noted the proximity of Miran’s potential confirmation to the Fed’s Sept. 16-17 Federal Open Market Committee meeting, where the central bank is expected to reassess interest-rate policy amid signs of a softening labor market.
Fed Chair Jerome Powell and other officials have defended the central bank’s cautious approach to rate cuts, pointing to uncertainty about the economic effects of the administration’s tariff measures. The Federal Open Market Committee, not a single official, determines the policy rate.
The nomination debate coincides with another dispute involving the Fed: the administration’s move to remove Fed Governor Lisa Cook. Trump has sought to fire Cook over mortgage fraud accusations that the president said were uncovered by the Federal Housing Finance Agency director. A judge on Tuesday temporarily blocked Cook’s dismissal while litigation proceeds, and Cook is fighting the attempt to oust her.
Supporters of Miran, including some Republicans on the panel, argued that his policy experience at the White House and his economic credentials make him a qualified candidate for the Fed board. Opponents countered that placing a sitting White House economic adviser on the Fed board at a time when the president is actively pressing for specific interest-rate decisions raises questions about the central bank’s ability to act independently.
If the nomination clears the Senate, Miran would serve the balance of the term through Jan. 31; the White House has indicated the possibility of identifying a different nominee thereafter. The Fed is expected to review policy at its mid-September meeting amid a mixed economic picture that includes cooling job growth and ongoing inflation considerations.
The full Senate must still vote on Miran’s nomination. Lawmakers and markets will be watching how the confirmation process, the dispute over Cook’s removal, and the White House’s calls for lower rates influence the Fed’s deliberations in the coming weeks.