Foreign media outlets, including The New York Times (NYT), reported that on September 10 (local time), the U.S. Senate Banking Committee approved the nomination of Steven Myron, a close associate of President Donald Trump, as a member of the U.S. Federal Reserve Board of Governors. This marks further progress in President Trump's efforts to fill the Federal Reserve Board with his allies.
In the vote, all 13 Republican committee members voted in favor, while all 11 Democratic committee members voted against.
If the Senate addresses the confirmation as early as September 15 in a full session, nominee Myron will be able to attend the Federal Open Market Committee (FOMC) meeting scheduled for September 16-17 as a board member. His term will last until January 31 of next year, completing the remainder of the term left by former board member Adriana Kugler, who resigned earlier.
Currently serving as Chair of the White House Council of Economic Advisers, nominee Myron has stated that if confirmed as a Federal Reserve Board member, he plans to take an unpaid leave of absence rather than resign.
The Democratic Party has expressed concerns that, because nominee Myron is a close associate of President Trump, his appointment could undermine the independence of the Federal Reserve and allow the Trump administration to exert greater influence over monetary policy.
President Trump has repeatedly criticized and pressured Federal Reserve Chair Jerome Powell for not lowering the benchmark interest rate as he has demanded. In addition, Trump nominated Myron to fill the vacancy created by Kugler's resignation and notified Lisa Cook, who was appointed during the previous Joe Biden administration, of her dismissal on charges of mortgage fraud. These moves are seen as attempts to strengthen his influence over the Federal Reserve by appointing close associates to the board.
However, the previous day, a court granted an injunction to halt Cook's dismissal, allowing her to remain in her position for the time being. As a result, it is now more likely that Cook will also participate in the upcoming FOMC meeting.
Meanwhile, the Trump administration's Department of Justice appealed the court's injunction decision, suggesting a prolonged legal battle. The court determined that the fraud allegations cited by President Trump as grounds for dismissal pertained to actions before Cook became a Federal Reserve Board member, and therefore did not constitute valid grounds for removal. In contrast, the Trump administration argues that the president has broad authority to determine grounds for dismissal.
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