The United States Senate approved, on Monday, September 15, the appointment of President Donald Trump of one of his economic advisors to the Federal Reserve (Fed), a few hours before a key meeting of the Central Bank of the United States.
Sustained by the Republican presidential majority, the Senate voted 48 votes against 47 to confirm Stephen Miran, who will have to take an oath extremely to sit on Tuesday and Wednesday at the meeting during which, every six weeks, the Central Bank of the United States decides the level of its guide fees.
Democratic opponents opposed their appointment, fearing that only Donald Trump’s wishes would apply, within an institution that was supposed to be independent.
A valid mandate until January 31, 2026
To the head of the Economic Advisors Committee (CEA) of the White House, Stephen Miran is one of the architects and defenders of the economic policy of the Republican President. During his audience in the Senate, he estimated, in reverse of most economists, that “there was no detectable increase in the general price level after the establishment of customs duties” by the US Executive.
Trained at Boston University and then in Harvard, where he received his title of Doctor in Economics, Stephen Miran worked for investment companies and was an advisor to the Ministry of Finance at the end of Donald Trump’s first mandate. You must occupy a vacant governor post from Adriana Kugler’s surprise resignation. Appointed by former Democratic president Joe Biden, he did not specify the reasons for his early departure.
Adriana Kugler’s mandate would extend until January 31, 2026. This time Stephen Miran is supposed to cover. Due to the brevity of the mandate, Stephen Miran explained to the senators in early September that he did not plan to resign his advisor position to the president, but only from paying without paying.
The unprecedented situation, a governor who maintains a link with the White House, rebelled the opposition that denounces an announced “servitude”. Donald Trump has been demanding a monetary relaxation for months to lighten the costs of loans and support for support. In parallel, the risks of renewed inflation, a perspective that until now has slowed the US central bankers.
Open conflict between Donald Trump and the president of the Fed
Again, on Monday, Donald Trump called the president of Fed Jerome Powell to reduce interest rates “now, and more strongly than he has in mind”, in a message about social social.
This week’s meeting should in any case mark the first rate drop in 2025. Investors mainly anticipate a decrease in a quarter of a point, which is more common in monetary policy.
To accelerate things, Donald Trump is trying to leave space for the faithful at the top of the Fed. After threatening to say goodbye to Jerome Powell and called him in vain to give up, he tries to push the governor Lisa Cook towards the exit. It accuses Lisa Cook of having lied to obtain real estate loans at more favorable rates.
On Monday, an American Court of Appeals confirmed a previous judicial decision that allowed the governor to remain temporarily in office, despite the announcement of his dismissal for Donald Trump. Therefore, he should be able to vote in principle with his colleagues about interest rates.
But the case is far from closed. Twelve people vote together in US interest rates: members of the Governor Council (six governors and Jerome Powell), president of the Fed of New York and four presidents of the regional Fed who change from one year to another.
Source: BFM TV
