Newsletters
A Federal Reserve governor appointed by President Donald Trump said Friday he received no direction from the White House on how to vote during this week's interest rate decision, despite being the sole dissenter who favored deeper cuts.
Stephen Miran, who joined the Fed board just hours before Tuesday's policy meeting, told CNBC that Trump called only to offer congratulations on his confirmation. "He didn't ask me to do any particular actions. I didn't commit to doing any particular actions," Miran said.
The former White House Council of Economic Advisers chair voted against the Federal Reserve's quarter-point rate reduction, instead supporting a larger half-point cut that would align more closely with Trump's repeated public calls for aggressive rate reductions.
Miran's dissent comes as the president has intensified pressure on the traditionally independent central bank, raising questions about potential political influence over monetary policy decisions. The Fed cut rates for the first time this year citing a weakening labor market, with policymakers signaling two additional cuts before year's end.
1 min read
The new governor defended his economic outlook Friday, particularly regarding Trump's tariff policies. "I don't see any material inflation from tariffs. I see no evidence that it's occurred," he said. Fed officials had previously maintained higher rates throughout much of the year while monitoring potential inflationary effects from the administration's trade policies.
Miran promised to provide a "full accounting" of his economic views on Monday and expressed hope he could persuade colleagues to support his perspective on future rate decisions.
Miran's rapid ascension to the Fed board has drawn scrutiny from Democratic lawmakers concerned about central bank independence. Confirmed by the Senate on Monday night, he was sworn in just before Tuesday's rate-setting meeting began, filling a term that expires January 31.
His decision to take a leave of absence from his White House role rather than resign completely has sparked criticism. Miran explained the unusual arrangement stems from his brief tenure: "If the President told me that I was going to stay in the seat past January I would just resign immediately."
The appointment unfolds against heightened tensions between the Trump administration and Fed leadership. Governor Lisa Cook is currently challenging the president's attempt to remove her through a legal case that remains pending.
The Federal Reserve has historically operated with independence from political interference, though Trump has consistently criticized the institution's policies and personnel decisions throughout his presidency.
3 min read
