Senate Banking Committee Advances Trump Nominee Stephen Miran for Federal Reserve Governor
The Senate Banking Committee voted Wednesday to advance President Donald Trump’s nominee, Stephen Miran, to serve as a Federal Reserve governor. The 13-11 vote followed strict party lines, with all Republicans supporting and Democrats opposing the nomination.
Miran, currently the chairman of the Council of Economic Advisers, was nominated to fill the vacancy created by Adriana Kugler’s unexpected resignation in August. Kugler did not publicly disclose reasons for her departure. If confirmed by the full Senate, Miran would serve through January 31, 2026, completing Kugler’s unexpired term.
The committee’s decision comes amid heightened tensions surrounding the Federal Reserve. Last week, a federal judge in Washington, D.C., issued a temporary injunction preventing Trump from removing Fed governor Lisa Cook, who has filed a lawsuit challenging her dismissal on grounds Trump alleges mortgage fraud—a claim Cook denies.
Trump has repeatedly called on the Federal Reserve to reduce interest rates, criticizing Chairman Jerome Powell on social media. In a recent post, Trump labeled Powell a “total disaster” and urged immediate, substantial rate cuts.
Miran has committed to taking an unpaid leave of absence from his role at the Council of Economic Advisers if confirmed, although Senate Democrats have pushed for his complete resignation from the council upon joining the Fed board.
Trump indicated that Miran’s appointment is temporary, stating the administration will continue searching for a permanent nominee to fill the Fed board’s full 14-year term. This leaves open the possibility of additional nominations pending the resolution of ongoing legal challenges and political negotiations.
FinOracleAI — Market View
The advancement of Stephen Miran’s nomination introduces greater uncertainty around Federal Reserve policy in the near term. Miran’s close association with the Trump administration and the current political friction surrounding Fed governance could influence monetary policy decisions, particularly on interest rates.
Risks remain elevated due to the unresolved legal dispute over Lisa Cook’s removal and the potential for a shift in the Fed’s leadership composition. Market participants should watch the full Senate confirmation vote and any subsequent Fed communications for signs of policy direction, especially regarding rate cuts.
Impact: Neutral
