Republicans advance Trump’s US Fed pick despite ties to White House

WASHINGTON – US President Donald Trump’s pick to join the Federal Reserve moved a step closer to joining the central bank on Sept 10, as the Senate Banking Committee advanced his nomination to the full Senate.

The vote came despite mounting concerns about his commitment to upholding the institution’s longstanding political independence.

The 13-11 decision could allow Mr Stephen Miran to be in place for the Fed’s next two-day meeting, which takes place on Sept 16-17. A full Senate vote is possible as soon as Sept 15, but it still remains a close call.

Mr Miran was tapped to fill what could be one of the shortest stints on the Board of Governors after Ms Adriana Kugler abruptly stepped down from the Fed in August.

He has moved through the confirmation process at warp speed as Republican lawmakers try to get him seated before the Fed’s vote on interest rates next week. And he has been nominated against the backdrop of an all-out push by Mr Trump to remake the central bank’s top ranks.

But perhaps the biggest break with tradition involves Mr Miran’s stated plans to remain tied to the White House while he serves at the Fed.

Rather than resign his post advising the President on economic policy as chair of the Council of Economic Advisers, Mr Miran said he would instead take an unpaid leave of absence. That would enable him to return to the administration once his term at the central bank was complete.

The arrangement has raised the spectre that Mr Miran may feel beholden to Mr Trump and unwilling to support policy actions that, while good for the economy, would be politically problematic for the president who employs him. Some warned that confirming Mr Miran under these circumstances could set a dangerous precedent, undermining the Fed’s longstanding independence.

The White House declined repeatedly this week to answer specific questions about Mr Miran’s planned leave of absence from the White House.

If confirmed by the full Senate, Mr Miran’s term with the Fed will last until January 2026, though he could remain in that role until Mr Trump secured a successor.

Asked if he would commit to resigning once the term expired, Mr Miran said no, signalling he would not automatically depart. The comment suggested Mr Miran was open to his term lasting longer than four months, since it could take time for the President to identify a new governor, or Mr Miran himself could be considered for other positions within the central bank. NYTIMES