Senate confirms Stephen Miran to Fed board ahead of crucial rate cut meeting

The Senate confirmed Stephen Miran, one of the White House’s top economic advisors, on Monday to the Federal Reserve Board of Governors, the body that steers the U.S. economy.

Senators voted 48-47, largely party-line vote in the Republican-controlled Senate.

Miran is set to report to the Fed’s Washington, D.C., headquarters on Tuesday, as officials open a two-day meeting that will help decide the direction of the economy.

The Federal Open Market Committee will meet on Sept. 16 to set U.S. interest rates and broader monetary policy. Those decisions ripple through to borrowing costs on everything from mortgages to credit cards.

MIRAN VOWS INDEPENDENCE, UNPAID LEAVE FROM WHITE HOUSE IF CONFIRMED

Fed watchers broadly expect the central bank to cut rates during the two-day meeting.

President Donald Trump tapped Miran, who leads the White House Council of Economic Advisers, on Aug. 7 to fill the seat vacated by Federal Reserve Governor Adriana Kugler, who resigned in August. Miran will finish the remainder of Kugler’s term, which ends on Jan. 31, 2026. 

Miran told lawmakers during his nomination hearing on Sept. 4 that he will take unpaid leave from his White House position while he serves on the Fed’s Board of Governors, also known as the Fed board.

TRUMP NAMES MIRAN AS REPLACEMENT FOR FED BOARD SEAT

Miran, a veteran of both Trump administrations, joins as the president presses the Fed to cut interest rates, highlighting the political spotlight on monetary policy.

Trump, who named Jerome Powell as Fed chair in 2017, has stepped up pressure in recent months for deeper cuts — urging the central bank to bring rates down to 1% to stimulate growth.

Powell's wait-and-see economic policy has kept the central bank’s key borrowing rate within a range of 4.25% to 4.5%. Powell has said that he's also held off cutting rates, in part, to assess the economic impact of Trump's ongoing trade policy.

Miran’s confirmation also comes as Federal Reserve Governor Lisa Cook sues Trump in federal court to keep her spot on the influential monetary panel. 

INFLATION REMAINED STUBBORNLY HIGH IN AUGUST AS FED WEIGHS RATE CUTS

Trump fired Cook on Aug. 25 following a series of allegations that she committed mortgage fraud. Bill Pulte, a Trump appointee to the federal agency that regulates Fannie Mae and Freddie Mac, tied Cook to a trio of properties in two separate referrals to the Justice Department. 

The trio of mortgage loans were issued in 2021 and before Cook was nominated as a Federal Reserve governor by former President Joe Biden. 

Trump used those allegations to remove Cook, which prompted her to sue him in federal court three days later. Her lawsuit named as defendants Trump, the Board of Governors of the Federal Reserve System, and Federal Reserve Chairman Jerome Powell.

FEDERAL RESERVE GOVERNOR LISA COOK SUES TRUMP

The suit, which was filed on Aug. 28, does not address the allegations that Cook listed multiple houses as a primary residence on mortgage filings. In another turn of events, the Justice Department launched a criminal investigation into Cook on Sept. 4. 

The probe could further complicate Cook’s fight to stay in her role on the Fed board, the panel of central bankers tasked with guiding the nation's monetary policy.

CLICK HERE TO READ MORE ON FOX BUSINESS 

Her lawyer, Abbe Lowell, wrote in a filing on Sept. 2 that she "did not ever commit mortgage fraud."

If Trump is successful in removing Cook, he will have nominated a majority of the Fed board, expanding his influence over U.S. monetary policy.