Trump’s Nominee Swears to Shield Fed—While Keeping His White House Post

Stephen Miran, President Donald Trump’s nominee to fill a vacant seat on the Federal Reserve Board, has reaffirmed his commitment to preserving the central bank’s independence in monetary policy, despite facing skepticism over his ability to do so while retaining his current position as chair of the Council of Economic Advisors. In prepared remarks to the Senate Banking Committee, Miran emphasized that the Fed’s independence is essential to achieving its dual mandate of price stability and maximum employment. He also reiterated that his decisions would be based on his analysis of the macroeconomic landscape rather than political directives. Miran’s nomination, which aims to fill the seat vacated by Governor Adriana Kugler, is set to conclude in January 2026 [1].

Miran’s confirmation hearing has drawn attention to the broader debate over the Federal Reserve’s independence amid Trump’s repeated criticisms of its leadership. The president has expressed frustration with the Fed’s current interest rate policy, advocating for substantial cuts to stimulate economic growth and reduce government borrowing costs. Miran, who previously criticized the Fed’s aggressive stimulus measures during the pandemic, has acknowledged the need for reform to ensure the Fed remains insulated from political pressures. In a March 2025 essay for the Manhattan Institute, he proposed shortening the 14-year terms of Fed governors and imposing restrictions on the so-called “revolving door” between the Fed and the executive branch. These proposals highlight the tension between enhancing accountability and maintaining the Fed’s independence from political influence [2].

The controversy over the Fed’s independence has intensified with Trump’s attempt to remove Governor Lisa Cook from the board, a move that has been challenged in court. The Federal Reserve, historically designed to operate independently of the executive branch, faces renewed scrutiny over its ability to resist political interference. In response, more than 600 economists recently issued an open letter warning that weakening the Fed’s independence could lead to monetary policy uncertainty and higher borrowing costs for consumers and businesses. They emphasized that the Fed’s mandate should not be subject to the whims of elected officials and that its independence is critical to economic stability [4].

European Central Bank President Christine Lagarde has also voiced concerns, calling any erosion of the Fed’s independence a “very serious danger” to both the U.S. and the global economy. Lagarde pointed out that while Trump has attempted to exert influence, the Fed’s structure—particularly the requirement for removal “for cause” established by the Supreme Court—makes it difficult for the president to dominate monetary policy decisions. The Fed’s seven-member board, combined with the rotating regional bank presidents, ensures a degree of institutional resilience against political pressure. However, the appointment of Trump-aligned officials to key positions has raised questions about the central bank’s ability to maintain a unified and independent policy stance in the long term [3].

Looking ahead, the Federal Reserve is expected to hold its next policy meeting on September 17, where a rate cut is widely anticipated. Analysts suggest that even if Trump succeeds in appointing more like-minded governors, the Fed’s established decision-making process—requiring consensus among voting members—will likely temper the impact of any political influence. While Trump has signaled his preference for a rate cut of at least 100 basis points, the Fed’s current stance, shaped by concerns over inflation and the potential inflationary impact of tariffs, is expected to result in a more measured adjustment. The central bank’s ability to resist extreme political pressure, supported by its legal and institutional safeguards, remains a key factor in its ongoing efforts to maintain monetary stability [5].

The Federal Reserve’s independence continues to be a focal point of debate as it navigates a complex political and economic landscape. Miran’s confirmation process, alongside ongoing legal and policy disputes involving other Fed officials, underscores the challenges faced by the central bank in maintaining its autonomy. While the Fed’s independence is legally protected and historically reinforced, the current administration’s actions have raised concerns about the long-term implications for monetary policy and economic stability. As the Fed moves forward with its September policy decision, its ability to uphold its mandate without succumbing to political pressures will remain a critical factor in shaping both domestic and global economic outcomes [5].

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[1] Stephen Miran, Trump's Fed governor nominee, pledges ... (https://www.cnbc.com/2025/09/03/stephen-miran-trumps-fed-governor-nominee-pledges-central-bank-independence.html)

[2] Stephen Miran pledges to uphold Fed independence without ... (https://finance.yahoo.com/news/stephen-miran-pledges-to-uphold-fed-independence-without-giving-up-white-house-role-181511975.html)

[3] US Fed loss of independence a serious danger, says ... (https://www.bbc.com/news/articles/c5y3110edzgo)

[4] US Fed To Hold Conference On digital assets Amid ... (https://cointelegraph.com/news/federal-reserve-conference-stablecoins-tokenization)

[5] Fed Watch: Independence & Filtering Out the Noise (https://www.wisdomtree.com/investments/blog/2025/09/03/fed-watch-independence-filtering-out-the-noise)