Historic Appointment Amid Controversy

In a dramatic move, the U.S. Senate has confirmed Stephen Miran, President Donald Trump's controversial pick, to the Federal Reserve's board of governors. This decision comes just ahead of a crucial interest rate vote that could reshape the economic landscape.

First White House Insider on the Fed

Miran, who currently serves as the chair of the Council of Economic Advisers, makes history as the first sitting White House official to join the Fed’s board since its establishment in the 1930s. His confirmation, however, was no cakewalk, passing with a razor-thin 48-47 vote.

Concerns Over Central Bank Independence

Experts and lawmakers are increasingly worried about the implications of Miran's nomination for the Fed's independence. Critics argue that his close ties to Trump may undermine the central bank's longstanding tradition of impartiality.

A Key Player in Interest Rate Policy

Miran is set to make his mark in an upcoming Federal Reserve policy meeting, joining a panel of 12 voting members. His presence is particularly important given Trump's push for significant interest rate cuts aimed at boosting an increasingly weak labor market.

Champion of Tariffs and Economic Restructuring

As a staunch supporter of Trump's global tariffs, Miran believes these import duties will not contribute to inflation. He argues that stricter immigration policies will weaken housing demand, ultimately leading to lower prices. Such beliefs align closely with Trump's economic strategy.

Swift Confirmation Raises Eyebrows

Miran’s confirmation has been unusually swift, taking only a few weeks—a process that usually drags on for months. This rapid approval has drawn scrutiny, with Senator Elizabeth Warren voicing concerns that he may be viewed as a "puppet" rather than an independent voice on the Fed board.

Tensions with the Fed and Internal Conflicts

For months, Trump has exerted pressure on the Federal Reserve, insisting on interest rate cuts to stimulate the economy and reduce government borrowing costs. His ongoing feud with Fed Chair Jerome Powell has been marked by harsh words, branding him a "numbskull" for delays in action.

Attempts to Dismiss Fed Governor Cook

Simultaneously, Trump is escalating efforts to remove Fed Governor Lisa Cook, the first Black woman to hold the position, citing vague allegations of mortgage fraud. Cook's critics argue that this move is politically motivated, especially as she has voted to maintain current interest rates.

After a legal battle, a U.S. appeals court recently denied the government's request to lift a ruling that prevents Trump from dismissing Cook.

Investigations into Political Rivals

In a further twist, the Trump administration is also pursuing mortgage fraud investigations against Senator Adam Schiff and New York Attorney General Letitia James, both prominent adversaries of the president.