The United States Senate Banking Committee on Wednesday (September 10th) advanced a nomination by President Trump to appoint Stephen Miran as temporary member of the Federal Reserve Board of Governors, moving the nomination to a vote by the full Senate.
In a strictly party-line vote of 13 to 11 on Wednesday morning, the Senate Banking Committee approved President Trump’s nomination of White House Economic Advisory Committee Chairman Miran to the Federal Reserve Board of Governors, pushing the confirmation process to the full Senate for a vote.
It is expected that Republican senators will swiftly take action to allow Miran to fill a vacancy on the Federal Reserve Board of Governors before its meeting next week, where he would participate in voting on central bank interest rate policies.
The next policy meeting of the Federal Open Market Committee is scheduled for September 16th to 17th. This meeting is closely watched as the latest employment and inflation data, as well as changes in personnel at the Federal Reserve Board, set a foundation for potential interest rate cuts by the central bank.
Former Federal Reserve Board Governor Adriana Kugler, appointed by Democratic President Biden, resigned in early August, leaving a vacancy on the Board of Governors. This opportunity allows President Trump to begin reshaping the Federal Reserve Board before Chairman Jerome Powell’s term ends in May 2026, potentially influencing the board for years to come. Members of the Federal Reserve Board serve 14-year terms.
President Trump also announced in late August the dismissal of another Federal Reserve Board member, Lisa Cook, appointed by Biden, due to criminal referrals by the Federal Housing Finance Agency regarding alleged mortgage fraud in a property purchase a few years ago. The Department of Justice has initiated an investigation into these allegations.
President Trump had requested Cook’s resignation, and upon her refusal, proceeded to dismiss her. Cook later filed a lawsuit. Just this Tuesday, a U.S. district judge appointed by Biden ruled that Trump cannot dismiss Cook during ongoing litigation, allowing her to remain temporarily and participate in the upcoming Federal Reserve policy meeting next week. However, the Trump administration has filed an appeal against the ruling on Wednesday.
Market analysts predict that the Federal Reserve will cut interest rates at this policy meeting, marking the first cut since December last year. The main reason for the central bank’s decision to cut rates is the slowdown in job growth.
The Federal Reserve currently maintains its policy interest rate in the range of 4.25% to 4.50%. Since returning to the White House in January this year, Trump has continuously urged for a significant rate cut by the Federal Reserve, criticizing Chairman Powell for maintaining a no-cut stance. Powell has stated that he and other policymakers at the central bank are monitoring the impact of Trump’s new tariff measures on inflation and employment, but he hinted in a speech at the end of August that a rate cut in September is possible.
The Federal Reserve Board has seven governor seats, of which two were appointed by Trump during his first presidential term. These two governors have recently expressed opposition to the Federal Reserve’s decision to keep interest rates unchanged.
If ultimately confirmed by the Senate, Miran’s term as Federal Reserve Board governor would end on January 31st of next year.