The U.S. Senate confirmed Stephen Miran, a top economic adviser to President Donald Trump, to the Federal Reserve’s Board of Governors in a 48-47 vote on Tuesday. The decision, split largely along party lines, grants the White House increased influence over the central bank just days before an expected vote to lower the Fed’s key interest rate. Miran’s appointment fills the unexpired term of Adriana Kugler, who resigned unexpectedly on August 1, and extends until January.

The confirmation process sparked debate over the Federal Reserve’s independence, a cornerstone of its role in setting monetary policy. Miran, who currently chairs the White House’s Council of Economic Advisers, stated he would take unpaid leave from that position but initially plans to retain it. Senate Democrats, led by Chuck Schumer, criticised this arrangement, arguing it undermines the Fed’s autonomy. Schumer described Miran as “nothing more than Donald Trump’s mouthpiece at the Fed.” Alaska Senator Lisa Murkowski was the sole Republican to vote against the nomination.

Miran’s prior statements added fuel to the controversy. In a 2024 paper co-authored with Daniel Katz for the Manhattan Institute, he criticised the “revolving door” between the White House and the Fed. Despite this, Miran assured the Senate Banking Committee on September 4 that he would act independently, basing decisions on economic data. He noted that if appointed to a longer term, he would resign from his White House role, citing precedents like former Fed Chair Ben Bernanke, who left his White House position before joining the Fed.

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The confirmation comes as the Fed navigates a complex economic landscape. Inflation remains above the Fed’s 2% target, driven partly by Trump’s sweeping tariffs, while unemployment rose to 4.3% last month. Economists predict the Fed will cut its key rate from 4.3% to approximately 4.1% after its meeting on Wednesday, balancing inflation concerns with weakening job growth. Miran’s role on the board, which votes on interest rate decisions and oversees the financial system, will be closely watched amid ongoing tensions over the Fed’s independence.

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