Trump’s Pick for the Fed Says He Will Uphold the Central Bank’s Independence
Stephen Miran is scheduled to face members of the Senate Banking Committee on Thursday as the administration steps up its attacks on the Federal Reserve.
By Colby Smith
Stephen Miran, in prepared remarks, stressed that his policy decisions would be based on his “analysis of the macroeconomy and what’s best for its long-term stewardship.”Credit...Doug Mills/The New York TimesPresident Trump’s pick to join the Federal Reserve will try to alleviate concerns that he could seek to undermine the central bank’s longstanding independence from the White House if confirmed to serve on the Board of Governors at a time when the institution is under attack by the administration.
Stephen Miran, who most recently was one of Mr. Trump’s top economic advisers, is set to tell members of the Senate Banking Committee on Thursday that he supports the central bank’s ability to make policy decisions free of political influence.
“In my view, the most important job of the central bank is to prevent Depressions and hyperinflations.
Independence of monetary policy is a critical element for its success,” he said in prepared remarks that were released on Wednesday.
“The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability.”
Mr. Miran stressed that his policy decisions would be based on his “analysis of the macroeconomy and what’s best for its long-term stewardship.”
He said he would adhere to the goals laid out by Congress, which stipulate that the Fed should set interest rates with an aim to keep inflation low and stable and foster a healthy labor market.
“Given the central bank’s outsized role in the economy, it’s no surprise that outsiders have opined on its decisions for decades,” Mr. Miran added.
“However, if confirmed, I plan to dutifully carry out my role pursuant to the mandates assigned by Congress."
The comments come at a tenuous moment for the central bank, which is facing an onslaught of pressure from Mr. Trump for its unwillingness so far this year to lower borrowing costs as drastically as the president would like.
Mr. Trump has already tried to fire one governor, Lisa Cook, over allegations that she committed mortgage fraud, igniting an intense legal battle over whether she can remain on the Fed.
Ms. Cook has denied the claims and has sued the president, arguing that her removal is unlawful.
If confirmed by the Senate, Mr. Miran will fill a position abruptly vacated by Adriana Kugler last month.
Her term was set to expire in January, meaning Mr. Miran may have only a few months on the Fed before having to exit.
The administration is seeking to have him in place ahead of the central bank’s next meeting on interest rates on Sept. 16-17.
As a governor, he would be able to vote on interest rates as well as any major decisions related to the rules that govern Wall Street.
He would also have sway over internal deliberations related to staff and other internal matters.
The president has been explicit about his desire to have a majority of the board backing him, a degree of support that would confer him wide latitude to mold the central bank to his liking.
Colby Smith covers the Federal Reserve and the U.S. economy for The Times.
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