Senate verifies Stephen Miran's appointment to the Federal Reserve board in preparation for a significant interest rate reduction gathering
The Federal Reserve Board of Governors has a new member, Stephen Miran, who will fill the seat vacated by Adriana Kugler. Miran, currently the Chair of the White House Council of Economic Advisers, is set to report to the Fed's Washington, D.C., headquarters on Tuesday.
Miran has vowed to take unpaid leave from his White House position while he serves on the Fed's Board of Governors. His term will end on January 31, 2026.
Meanwhile, current Federal Reserve Governor Lisa Cook is embroiled in a legal battle with President Donald Trump. Cook, who was succeeded by Miran on the college board, is suing Trump in federal court to keep her spot on the influential monetary panel. The lawsuit stems from Trump's decision to fire Cook in August, following a series of allegations that she committed mortgage fraud.
However, Cook's lawyer, Abbe Lowell, wrote in a filing on September 2 that she "did not ever commit mortgage fraud." The Justice Department launched a criminal investigation into Cook on September 4.
If Trump is successful in removing Cook, he will have nominated a majority of the Fed board, expanding his influence over U.S. monetary policy. This could potentially impact the Fed's upcoming decisions, such as the meeting of the Federal Open Market Committee (FOMC) scheduled for September 16.
The FOMC is expected to result in a cut in interest rates, a move that President Trump has been pressuring the Fed to make to stimulate growth. However, Fed Chairman Jerome Powell has held off on cutting rates in part to assess the economic impact of Trump's ongoing trade policy.
The trio of mortgage loans that Cook is being investigated for were issued in 2021 and before she was nominated as a Federal Reserve governor by former President Joe Biden. The details of these loans and their connection to the allegations against Cook have not been disclosed.
The FOMC will meet on September 16 to set U.S. interest rates and broader monetary policy. The meeting's outcome could have significant implications for the U.S. economy and the global financial markets.
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