The Senate Banking Committee advanced the nomination of Stephen Miran to fill Adriana Kugler’s recently vacated seat on the Federal Reserve Board of Governors in a party-line vote Wednesday morning.
All committee Democrats opposed Miran’s nomination and all Republicans voted in favor. If approved by the full Senate, Miran would be President Donald Trump’s third appointment to the seven-member governing board that guides U.S. monetary policy.
Miran’s stated intention to take a leave of absence instead of stepping down as chairman of the White House’s Council of Economic Advisers if confirmed as a Fed governor has raised concerns of central bank independence, which played out in heated exchanges in a Senate committee hearing last week.
In a brief statement to the committee following Wednesday’s vote, Sen. Jack Reed, a Democrat from Rhode Island and senior member of the committee, underscored the questionable legality of Miran serving as both an independent Fed governor and White House adviser. He said Miran reserved a legal opinion on the matter but has not provided it to the committee.
“We requested, in writing, that legal opinion and he’s refused to give it to us,” Reed announced. “So we are still completely uncertain as to his legal status and his independence, which is critical, as a member of the Federal Reserve Board.”
The soonest Miran’s confirmation vote in the Senate could occur is Monday, according to reporting by Reuters, casting doubt on his swearing in before the Fed’s Sept. 16-17 monetary policy meeting. The Federal Open Market Committee, which Miran would become a member of if confirmed, is widely expected to lower its benchmark short-term interest rate by at least 25 basis points.
Nevertheless, Miran is expected to receive swift approval in the Republican-led Senate.
Wednesday’s vote to advance Miran’s nomination occurred a day after a federal court ruled that Trump’s attempt to fire Federal Reserve Governor Lisa Cook for alleged mortgage fraud was “done in violation of the Federal Reserve Act’s ‘for cause’ provision” while likely violating Cook’s Fifth Amendment due process rights.
U.S. District Judge Jia Cobb granted a temporary restraining order allowing Cook to continue serving on the Fed’s board and its rate-making committee as her case proceeds.
