Miran Swears by Fed Independence as Critics See Trump's Shadow

Stephen Miran, President Donald Trump’s nominee to the Federal Reserve Board of Governors, has drawn significant scrutiny for his stance on central bank independence and his recent vote for a larger-than-expected interest rate cut. Trump’s appointment of Miran, a former Council of Economic Advisers chair, has reignited debates over the Fed’s autonomy, with critics alleging the administration is politicizing monetary policy. Miran, confirmed by the Senate on September 19, 2025, filled the seat vacated by Governor Adriana Kugler and immediately made headlines by dissenting in the Fed’s September meeting, advocating for a 50-basis-point rate cut instead of the 25-basis-point reduction supported by the majority title1^[1].

Miran’s arguments for aggressive rate cuts align with his long-held views on the Fed’s perceived lack of independence. In a 2023 article for City Journal, he criticized the Biden-era Fed for becoming a “virtual arm of the U.S. Treasury,” citing overlapping personnel between the two institutions and the central bank’s delayed response to post-pandemic inflation. He argued that the Powell-led Fed’s failure to tighten monetary policy early enough exacerbated price surges, which reached 8.5% consumer price inflation before rate hikes began title1^[1]. This critique contrasts with his recent defense of the Fed’s independence, where he stated in a CNBC interview, “The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence” title2^[2].

The tension between Miran’s public commitments and his actions has raised questions about his alignment with Trump’s economic agenda. During his first Fed meeting, Miran was the sole governor to vote for the larger rate cut, projecting a terminal rate of 2.75%–3% for 2025, significantly lower than the 3.5%–3.75% range forecast by his peers title2^[2]. He attributed his stance to his analysis of disinflationary trends, including Trump’s tariffs and deregulation policies, claiming these measures “have pushed down prices” title2^[2]. However, Fed Chair Jerome Powell noted that tariffs could still pose inflationary risks, emphasizing the need for vigilance to prevent transient price shocks from becoming persistent title2^[2].

Miran’s dual role as a White House appointee and Fed governor has also drawn skepticism. Despite taking a leave of absence from the Council of Economic Advisers, he remains an unpaid federal employee, complicating perceptions of his independence. In a prepared statement to the Senate Banking Committee, Miran pledged to base decisions on “my analysis of the macroeconomy and what’s best for its long-term stewardship,” but Democratic lawmakers questioned his ability to remain impartial given his close ties to the administration title3^[3]. EY-Parthenon economist Gregory Daco warned that the “heightened political tension” surrounding the Fed’s decisions could undermine its credibility and flexibility title2^[2].

The broader implications of Miran’s appointment extend beyond monetary policy. Trump’s push to fill the Fed board with loyalists has intensified concerns about the central bank’s autonomy, a cornerstone of its credibility since the 1970s. Miran’s advocacy for deregulation and protectionist trade policies further complicates his role in an institution traditionally focused on price stability and employment. While he emphasized his commitment to the Fed’s dual mandate during his confirmation hearing, his past writings and recent actions suggest a nuanced view of central bank independence—one that challenges the status quo while navigating the political pressures of his appointment title1^[1].