Stephen Miran, President Donald Trump’s nominee to fill a vacancy on the Federal Reserve Board, faced a rigorous confirmation hearing where he addressed concerns about his dual roles as a White House advisor and potential central bank member. Miran, who now chairs Trump’s Council of Economic Advisors. We are heartened by his stated desire to protect the independence of the Federal Reserve, something we hope lawmakers are watching very carefully.
Miran was nominated to complete the term of former governor Adriana Kugler. A final vote by the full Senate is anticipated in the next few days. In fact, during his testimony, he promised to take a leave of absence from the White House if confirmed. He went on to say he has no intention of stepping down from his post. This move has caused some senators to raise eyebrows and demand to know whether it is proper for one individual to occupy both of these powerful positions.
“I do not plan to resign from my White House role if confirmed,” Miran stated during the hearing. He underscored the need for independence of the Federal Reserve, in order for it to promote long-term economic stability. “The independence of the Federal Reserve is critical to delivering superior long-run outcomes for the economy,” he added.
Miran’s nomination received unanimous support from Republican lawmakers. Senator John Kennedy asked him to put economic realities ahead of political concerns. “You’ve got to call them like you see them and ignore – nothing wrong with people giving their advice – but ignore all the rhetoric,” Kennedy advised.
Not all senators were convinced that Miran could serve independently. Senator Elizabeth Warren was none too pleased as it was. She warned that he would risk being perceived as a “puppet” and would lose credibility as an independent monetary policy voice. She cautioned that regardless of the specifics of their arguments, any politicization of the Federal Reserve is dangerous and damaging to American consumers and businesses.
Warren announced that letting the Fed become a political football will cost Americans dearly. Every single American consumer, worker, and business will end up paying a long-term price for that regrettable decision.
Miran faced more uncomfortable questions as Democrats demanded to know why he wouldn’t commit to accepting the result of the 2020 election. He chose to play it safe and did not explicitly say that Trump had been defeated. Some saw this as a failure to deviate from the administration’s story lines.