Trump's pick enters Federal board: Is he edging out rivals, accommodating loyalists for Fed Rate cut?
&imwidth=600&imheight=450&format=webp&quality=medium "Trump's pick enters Federal board: Is he edging out rivals, accommodating loyalists for Fed Rate cut?")
US President Donald Trump Photograph: (AFP file)
Stephen Miran has been voted in the US Federal Reserve's board. His appointment comes close on the heels of a crucial gathering that would decide whether US Federal Rates would be cut or not. Miran holds a PhD in economics from Harvard University.
In a big win for US President Donald Trump, who seeks a Fed rate cut and has been trying to edge out Federal Reserve Governor Lisa Cook, the US Senate on Monday cleared his choice candidate for a major role at the Federal Reserve.
The decision came just after a US federal appeals court ruled Monday night that Federal Governor Lisa Cook can remain in her position. Donald Trump wants to fire her as she is not heeding his administration's open demand to lower the Federal rates, which dictate the rates of loans granted to the masses for consumer spending, including buying houses and cars. Both the real estate and auto sectors are crucial for any country's economy.
On Tuesday, the American central bank's Federal Open Market Committee (FOMC), which sets policy rates, will start a two-day huddle. All eyes will be on the outcomes of this gathering amid concern over political pressure faced by the independent central bank.
Stephen Miran, who chairs the White House Council of Economic Advisers (CEA), was included in the Fed's board of governors and FOMC. The Republican-majority Senate voted 48-47 to confirm Stephen Miran's appointment.
Why is his inclusion important?
The FOMC, which steers the world's largest economy, has 12 voting members. Seven of these members are of the Federal Reserve's board of governors. This means that Donald Trump will have a say in what the FOMC decides on Federal rates.
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Lisa Cook will also participate in the gathering to decide the direction the US economy will take.
The Donald Trump administration could take legal recourse, moving to the Supreme Court for intervention.
Miran's sudden confirmation and Lisa Cook's lawsuit come amid Trump's pressure on the bank to slash interest rates. Trump claims that the decision should be taken because the country's inflation rates have remained low. However, experts worry that Trump's interferencecould threaten the separation between the independent central bank and electoral politics.
Miran holds a PhD in economics from Harvard University and served as a senior advisor in the Treasury Department during Donald Trump's first presidency.