4:12Stephen Miran, presently the Chief of the Council of Economic Advisors, testifies before the Senate Banking, Housing and Urban Affairs Committee on September 4, 2025, in Washington.Elizabeth Frantz/Reuters
Stephen Miran, designated to be a member of the Federal Reserve’s governing body, on Thursday pledged to protect the independence of the monetary authority, adding that he has no intentions of relinquishing his present role as a leading economic advisor to President Donald Trump should he gain approval for the Fed assignment.
These comments were delivered as senators from both major parties underscored the significance of the Fed’s political impartiality during an extensive confirmation hearing before the Senate committee on housing, banking, and urban affairs.
Democratic senators expressed doubt about Miran’s commitment to preserving the Fed’s autonomy, while Republican representatives applauded Miran’s dedication to this principle and seemed prepared to offer their support for his nomination.
Democrats made reference to Trump’s ongoing campaign of pressure, spanning several months, urging the Fed to decrease interest rates, as well as Miran’s advisory function within the White House.
Trump recently took steps to dismiss board member Lisa Cook, who initiated legal proceedings against Trump regarding his attempted removal of her, arguing that the action infringed upon her legal safeguards as an employee of the independent federal establishment. Trump stated that his action against Cook stemmed from allegations of mortgage fraud.
Sen. Elizabeth Warren, D-Mass., criticized Miran, asserting that his nomination indicates Trump’s eagerness to "place his loyalists, thereby creating a Fed that prioritizes presidential preferences in its policies but lacks the credibility to maintain control over inflation."
In an effort to scrutinize Miran’s detachment from the president, Warren repeatedly questioned Miran on whether Trump had been defeated in the 2020 presidential election. Miran responded that Joe Biden had been "certified by Congress as president of the United States," however, Miran refrained from affirming that Trump had lost.
Miran stated that, if confirmed, he intends to take a temporary, unpaid break from his role as a principal economic advisor in the White House, rather than resigning. Miran arrived at this determination following "guidance from legal counsel," given that his tenure on the Fed board would extend for four months, according to Miran.
Miran has been put forward to fill a void resulting from the early departure of Fed board member Adrianna Kugler. Miran clarified that, after he completes Kugler’s remaining term, Trump could then nominate him for a full term, and he would then resign from his White House post.
The strategy of maintaining his position as a White House staffer sparked strong opposition from Democratic senators. "Your impartiality is already in doubt. You would technically remain an employee of the President of the United States while also serving as a member of the Federal Reserve board. This is preposterous," stated Senator Jack Reed, D-RI.
Democratic Senator from Massachusetts Elizabeth Warren offers her reaction during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing at the US Capitol, in Washington, September 4, 2025.Graeme Sloan/EPA/Shutterstock
Republicans sitting on the committee expressed approval of Miran’s dedication to maintaining the independence of the Fed.
Sen. Tim Scott, R-S.C., suggested that Miran’s proficiency would "bolster the Fed at this pivotal juncture."
"You have been explicit, consistent, and honest in your communications with me," Scott remarked.
Sen. Mike Rounds, R-S.D., commended Miran as "highly suitable for this role."
When Rounds inquired whether "it is acceptable for the president to lobby the Fed," Miran responded that he values input from various sources as a method of gaining exposure to diverse perspectives.
"The president has a right to an opinion on monetary policy, just as anyone else with an interest in the subject does. And I encourage everyone to share their viewpoints," Miran stated.
Miran has previously articulated strong critiques of the Fed. In the preceding year, Miran co-authored a report advocating for a "major restructuring" of the central bank, asserting that the Fed’s architecture has "fostered groupthink, leading to substantial errors in monetary policy."
Upon confirmation, Miran would represent the third Trump appointee on the seven-member Fed board. If Trump is successful in removing Cook and appointing a successor, his appointees would constitute a majority of the Fed board, whose members play a role in determining the nation’s interest rates and overseeing other central bank functions, such as supervising the financial sector.
The dispute regarding the Fed arises following Trump’s extended criticism of the central bank and its Chair Jerome Powell for their reluctance to heed his appeals for reduced interest rates. Five meetings and eight months have passed since the Fed last modified interest rates.
Last month, Powell announced that the Fed would "proceed cautiously," while hinting at the potential for a decrease in interest rates, seemingly indicating heightened concern for slowing employment growth relative to increasing prices.
The prospective policy adjustment may align the Fed with Trump’s preference for lower interest rates, although the monetary authority is anticipated to favor a minor quarter-point reduction, rather than the more significant cut that Trump has been seeking. The Fed is scheduled to release its decision regarding interest rate levels later in the current month.
Sourse: abcnews.go.com
