Senate grills Trump’s new Fed governor nominee

President Donald Trump’s nominee to the Federal Reserve Board, Stephen Miran, faced tough questioning Thursday before the Senate Banking Committee. 

At his nomination hearing, lawmakers from both parties stressed that the Fed’s independence is vital for stable financial markets and the US economy, to which even Miran agreed. He said, “The Federal Open Market Committee is an independent group,” and that he would protect that independence.

Who is Stephen Miran?
A White House economist, he is believed to be the brain behind President Trump’s sweeping tariffs. If confirmed, he will serve at the Federal Reserve till January. Miran said he would technically remain a White House employee if confirmed.

He pledged to resign if his term extended beyond January, but Democrats, such as Sen. Jack Reed, called the arrangement “ridiculous.”

Republicans also emphasized that rate-setting decisions must stay free of politics.

Past views spark doubts
Critics pointed to a report Miran co-authored last year that labeled Fed independence an outdated “shibboleth” and suggested shorter terms for governors. Miran defended his work as policy reform ideas, arguing he could remain independently minded if confirmed.

Recently, Trump said he may extend Miran’s tenure, potentially by appointing him to replace Federal Reserve Governor Lisa Cook.

Cook was recently ousted by the president, alleging mortgage fraud. Yesterday, the Department of Justice opened a criminal investigation to find out whether she submitted fraudulent information on mortgage applications, according to the Wall Street Journal.