Washington (AP) – Stephen Miran, President Donald Trump’s election to join the Federal Reserve Board, said on Thursday that he would remain an employee of the White House, even if the Senate confirms him to fill an unpaved term at the central bank.
Miran, who was nominated to occupy a Governor penalty expired in January, made the disclosure in a hearing at a hearing in a hearing at a hearing in front of the committee.
He said that when he advised his lawyers, he would take a “unpaid vacation” as chairman of the White House Economic Council. Miran later said he would only step down from the Republican government if he was nominated for the Fed in the long term.
His answer immediately triggered alarm bells about the independence of the Fed, which indicates that the central bank of Trump’s moods could ultimately shed up instead of its congress mandate in order to keep prices stable and to maximize employment. The political control of the Fed could undermine the belief that the American population and investors are placing in the US economy worldwide, which could endanger global markets and national prosperity.
The Democrats gave Miran’s plan to keep his daily job in the White House.
“Your independence has already been seriously affected,” said Senator Jack Reed, Dr.i.,. “Technically speaking, you will be an employee of the United States, but an independent member of the Board of Directors of the Federal Reserve. That is ridiculous.”
Miran’s hearing reflected the broader struggle for Trump’s efforts to get control of the Fed. Due to the possible negative effects on the economy, the FED tried to act on the basis of the economic data and not according to election considerations.
However, Trump has carried out a longer campaign by the Fed Fed Chairman Jerome Powell under pressure.
The president has also tried to exert pressure on the Fed about the renovation of his headquarters and other buildings, and tried to relieve Lisa Cook as a Fed governor because of allegations that she has committed mortgage fraud. Cook said she would not step down and sued Trump’s step, but on Thursday the Ministry of Justice started to examine the allegations against her.
In his answers to senators, Miran played the controversy about Trump’s wish to control the Fed. Miran said if he was confirmed to fill the rest of Adriana Kugler’s term of office, he would act on inflation and employment because of his own judgments.
“Look, the president appointed me because I have political views that he would suspect that he liked,” he told the committee chair, Senator Tim Scott, Rs.c. “If I am confirmed this role, I will act independently how the Federal Reserve is always based on my personal analysis of the economic data.”
Even the Republicans saw the risks for the loss of the independence of the Fed. Senator John Kennedy, R-La., Ask Miran to commit himself to “ignoring all rhetoric of all politicians” and making his own decisions.
But Miran arrives by luggage to have worked for a president who has expressed contempt for the Fed’s independence tradition. Trump has argued that he knows more about monetary policy because he demanded that the Benchmark rate of the Fed will be reduced by 3 percentage points.
In June, a Fed forecast showed future interest rates between political decision -makers. Seven predicted no rate reductions at all this year, two gave a reduction and ten forecasts at least two reductions.
“This is a crisis moment for the Federal Reserve, for the financial system and for the economic stability of families in this country,” said Senator Elizabeth Warren, D-Mass, before the hearing began.
Warren added that the “independence of the Fed board and its efforts to really make decisions on the basis of this in the economy – not what politics is – what benefits every single American. Donald Trump wants to burn it onto the ground.”
With the questioning of Warren, Miran declined to say whether Trump had lost the presidential elections in 2020 to Democrat Joe Biden, and only said that Congress had certified biden as president. Miran refused to contradict Trump’s unfounded claim that the Bureau of Labor Statistics had made the number of jobs for political reasons.
Trump released the head of the office after severe revisions in July employment report showed that the economy may have been weaker than Trump’s claim of a “golden age”.
There are also questions of how Miran interprets the independence of the Fed. He said that the president was entitled to express his opinion on monetary policy and that considering climate change as an economic force by Fed would be a politicization of the central bank.
In a newspaper of 2024, which he wrote together for the Manhattan Institute, Miran argued that the Fed was already politicized by “highly political employees who move freely between the white house” and the central bank headquarters.
In the same paper, Miran wanted to escalate the president’s control and said that the Fed board members would give a “greater democratic legitimacy” according to the will of the President of the Fed.
By stating that he could return to the White House, Miran seemed to undermine one of his own recommendations in his newspaper.
“In order to continue to isolate the board members from the daily political process, they should serve in the executive department for four years after the end of their term of office,” says the paper.
