Stephen Miran, the candidate of US President Donald Trump at the Federal Reserve Board, lives a Senate Bank, Housing and Urban Affairs Committee for Nomination Hilling on Capitol Hill in Washington, DC, US, 4 September 2025. Photocredit: Elizabeth Frantz/Reuters
Stephen Miran, the choice of US President Donald Trump to become a member of the Federal Reserve Board, said on Thursday that he would remain an employee of the White House, even if the Senate confirms him to fulfill a non -expiration period at the central bank.
Miran, who was nominated to prosecute a gubernatorial term of office in January, made the disclosure during a hearing for the Senate Banking, Housing and Urban Affairs Committee.
He said that on the advice of his lawyers he would take an “unpaid leave of absence” as chairman of the White House Council of Economic Advisers.
Miran later said that he would resign from the Republican government if he was nominated at the FED for a longer term.
Democrats call plan a threat to nourish independence
His answer immediately caused alarm bells about the independence of the FED, which suggests that the central bank could eventually become subordinate to the whims of Trump instead of its congress mandates to keep prices stable and maximize employment.
Political control over the Fed could eliminate the belief that the American population and investors are taking place worldwide in the American economy, which could threaten global markets and national prosperity.
Democrats destroyed Miran’s plan to keep his daily job at the White House.
“Your independence has already been seriously compromised,” said Sen Jack Reed.
“You become technically an employee of the President of the United States, but an independent member of the Board of Directors of the Federal Reserve. That is ridiculous.” Miran’s hearing reflected the wider struggle for Trump’s efforts to gain control of the Fed. Due to the possible negative effects on the economy, the FED tried to act based on the economic data instead of election considerations.
Trump’s History of Druk Fed contributes to care
However, Trump has entered into a long -term campaign to put pressure on Fed chairman Jerome Powell because he did not reduce the benchmark interest rate to the taste of Trump, a movement that could ultimately pump more money into the economy and create greater inflatory risks.
The FED has yet to reach its 2 percent inflation objective and has kept its rates steadily steadfast because of the uncertainties created by Trump’s import tax.
Accusations swirls about Fed Governor Lisa Cook
The president has also tried to exert pressure on the FED on his renovation of her head office and other buildings and has tried to dismiss Lisa Cook as a Fed Gouverneur for accusations that she has committed mortgage fraud.
Cook said that she will not resign and has charged to overthrow Trump’s move, but on Thursday the Ministry of Justice had started investigating the allegations against her.
In his answers to senators, Miran played the controversy about Trump’s wish to control the Fed. Miran said that if he was confirmed that he would fill the rest of the anniversary of Adriana Kugler, he would act on the basis of his own judgments about inflation and employment.
“Look, the president has nominated me because I have policy views that I suppose he liked it,” he said, the Commission President, Sen Tim Scott, “If I am confirmed in this role, I will act independently, as the Federal Reserve always does, based on my own personal analysis of economic data.” Even Republicans saw the risks for the loss of Fed independence. Sen John Kennedy asked Miran to “ignore all the rhetoric of all politicians” and to make his own choices.
But Miran arrives with the luggage to have worked for a president who has expressed contempt for the FED independence tradition.
Trump has argued that he knows more about the monetary policy, because he has called to defeat the bench market rate of the FED by a full 3 percentage points.
In June, a FED prediction of future rates showed emerging division among the policy makers. Seven expects no tariff reductions this year, two indicated one cut and 10 predicted at least two reductions.
“This is a crisis moment for the Federal Reserve, for the financial system and for the economic stability of families in this country,” said Sen Elizabeth Warren reporters before the start of the hearing.
Warren added that “independence and their efforts of the Fed Board and their efforts to make decisions based on what is really happening in the economy – not what is the politics – something that every American benefits. Donald Trump wants to burn on the ground”.
Under interrogation by Warren, Miran refused to say whether Trump lost the 2020 presidential election to Democrat Joe Biden, and only said that Congress Biden certified as president. Miran refused to ask questions to contradict Trump’s unfounded statement that the Bureau of Labor Statistics had forced task numbers for political reasons.
Trump dismissed the head of the office after serious revisions of the July employment report showed that the economy was potentially weaker than Trump’s claims over a ‘Golden Age’.
Published on September 5, 2025
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