Miran, Fed Board Nominee, Faces Senate Confirmation Hearing
Despite Emphasizing "The Importance of Monetary Policy Independence"
Signals Possible Dual Role as Fed Governor and White House CEA Chair
Opposition Warns: "Trump Will Be Your Futu
Stephen Miran, the nominee for the United States Federal Reserve (Fed) Board of Governors, has stated that if he is officially appointed, he will take an unpaid leave of absence from his current position as Chair of the White House Council of Economic Advisers (CEA) while maintaining his role. This effectively means he intends to serve the remaining four and a half months of his term until the end of January next year before returning to the White House. Democratic lawmakers have strongly criticized this plan, arguing that it could undermine the Fed's independence.
On September 4 (local time), during his confirmation hearing before the Senate Banking Committee, Miran said, "I have been advised by counsel that taking unpaid leave from the CEA and suspending my activities is the legally appropriate approach." He added, "My term is four and a half months," and continued, "If my appointment as a board member extends beyond a few months, I will resign completely."
Miran is known as a close aide and "economic strategist" for former President Donald Trump. He was nominated to fill the remainder of the term left by Federal Reserve Governor Adriana Kugler, who recently resigned unexpectedly before her term was set to end in January 2026. Given that President Trump has pressured Fed Chair Jerome Powell to cut interest rates since the beginning of his administration, there are growing concerns that Miran may support Trump's demands for rate cuts, thereby undermining the political independence of the Fed.
Democratic lawmakers have strongly objected to Miran's condition that he will resign from his CEA duties only if his appointment is confirmed, rather than stepping down immediately.
Senator Jack Reed (Democrat, Rhode Island) called the situation "outrageous," stating, "Your independence has already been seriously undermined by the statements you have made."
Senator Andy Kim (Democrat, New Jersey) said, "You could continue to act in a way that aligns with the president's political interests, since the president will once again be your future boss at the White House." He then questioned, "Why do you want to serve at the Fed for just four months?"
Senator Elizabeth Warren (Democrat, Massachusetts) also directly criticized Miran, saying he would become "a puppet" for President Trump.
In the market, there are expectations that Miran will carry out President Trump's demands for interest rate cuts when making Fed monetary policy decisions. While the recent deterioration in employment indicators has led to calls within the Fed for rate cuts, there are concerns that President Trump's overt intervention in monetary policy could increase instability in financial markets.
Miran has repeatedly emphasized the Fed's independence in response to these concerns. He stated, "The central bank's most important responsibilities are to prevent recessions and hyperinflation," and added, "The independence of monetary policy is extremely important to the success of the central bank." He also said he has never been asked to make any promises to lower interest rates, stressing, "The Fed is an independent institution with significant responsibilities, and I will do my utmost to preserve its independence and serve the American people."
Meanwhile, the Republican Party, which holds the majority in the Senate, plans to expedite Miran's confirmation process. As a result, it is highly likely that he will officially participate as a new board member at the upcoming Federal Open Market Committee (FOMC) meeting scheduled for September 16-17.
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