The Senate Banking Committee will hold a hearing next week on President Donald Trump’s nomination of Stephen Miran to the Federal Reserve Board, according to reporting from Bloomberg and Politico.
The hearing is expected to turn into a fight over Trump’s ongoing pressure campaign to force the Fed to cut rates, and his sudden decision this week to fire Governor Lisa Cook.
Stephen was nominated earlier this month to take over the short-term seat left vacant by Adriana Kugler, whose term ends in January 2026.
But on Tuesday, Trump said he might change course and appoint Stephen to Lisa’s spot instead, since her seat runs through 2038. “We just put a very good man in that in one position,” Trump told reporters at the White House, “we might switch him to the other, it’s a longer term.”
Trump’s attempt to fire Cook complicates confirmation plans
Lisa was removed this week over claims she committed mortgage fraud. Trump said in a letter that he posted on his own social media account that the allegations were “sufficient cause” to justify her removal.
Lisa, a Joe Biden appointee, rejected the claim and vowed to sue in court, saying “no cause exists under the law” and that Trump “has no authority to” take her off the board.
Trump’s decision has drawn sharp criticism from Democrats and caution from some Republicans, especially those who’ve historically defended the Fed’s independence. It’s the first time in history that any president has tried to remove a Fed governor “for cause,” and many lawmakers aren’t willing to let it slide.
The White House, meanwhile, is pushing to get Stephen confirmed quickly, hoping he can participate in the Fed’s mid-September meeting. But the Cook situation is making that a tall order. With a legal battle now underway and growing unease in Congress, even some of Trump’s Republican allies are starting to hesitate.
Lawmakers raise alarm over independence of Fed
Democrats are pressing hard on the issue of central bank independence, hoping to stop the confirmation unless Trump backs off his effort to remove Lisa.
“Four Senate Republicans could preserve Fed independence if they refuse to move any Trump Fed nominee until he stops trying to illegally fire Cook,” said Aaron Klein, former staffer on the Senate Banking Committee and current fellow at the Brookings Institution. “Fed independence is something created by Congress. It’s now time to see whether Congress will stand up for Fed independence.”
Federal Reserve spokespersons made that point before him on Tuesday, saying that governors can only be removed for cause, as laid out in the Federal Reserve Act, and that long-term appointments are designed to protect the Fed from political swings.
The Trump administration is moving to lock in a pro-White House majority on the Fed’s board. “We’ll have a majority very shortly,” Trump said Tuesday afternoon. “So that’ll be great.”
Not every Republican is on board. Senators Thom Tillis of North Carolina and John Kennedy of Louisiana, both members of the Banking Committee, have publicly supported the Fed’s independence in the past, especially when Trump had floated removing Jerome during his first term.
If even one or two Republicans break ranks, Stephen’s nomination could stall, unless he gets unexpected support from Democrats. Outside the Senate, House Republicans are opening a new line of scrutiny aimed directly at Lisa.
Dan Schneider, spokesperson for House Financial Services Committee Chair French Hill, said Tuesday, “Congress has a constitutional responsibility to provide oversight, and the Committee looks forward to examining the allegations” against her.
French has previously said he doesn’t believe the president has the legal power to fire Jerome either.
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Source: https://www.cryptopolitan.com/senate-hearing-trump-fed-pick-stephen-miran/
