Donald Trump’s nominee for the Federal Reserve’s Board of Governors, Stephen Miran, has pledged to take an unpaid leave of absence from his White House role while serving at the US central bank, amid growing concerns about the Fed’s independence.
Miran, who currently chairs the White House Council of Economic Advisers (CEA), clarified during his Senate Banking Committee confirmation hearing that the temporary arrangement stems from his nomination to fill a short-term vacancy left by Adriana Kugler’s resignation in January.
“I have received advice from counsel that what is required is an unpaid leave of absence,” Miran told lawmakers, stressing that the leave will last for the duration of his four-month term. He added that if appointed to a longer term, he would “absolutely resign” from his White House role.
Trump nominated Miran to the Fed at a sensitive time, with the Federal Open Market Committee (FOMC) set to meet September 16–17 to decide on interest rates. Trump has repeatedly pressured the Fed to slash rates, blaming high borrowing costs for a sluggish housing market.
Critics, including Senator Elizabeth Warren, have accused Trump of staging an “all-out assault” on the Fed’s independence. Minnesota Senator Tina Smith echoed these concerns, warning that the president “wants loyalists on the Fed board.”
Miran pushed back, insisting that the Fed’s mission must remain free from political influence. “Independence of monetary policy is a critical element for its success,” he said. He emphasized that the Fed’s responsibility is to safeguard the economy against depression and hyperinflation.
Ryan Sweet, chief US economist at Oxford Economics, suggested that this temporary appointment may serve as a “long tryout” for Trump to test Miran’s alignment before considering him for a longer term after January.
Concerns over politicization intensified following reports that Trump tried to remove Fed Governor Lisa Cook, the first Black woman on the board, citing mortgage fraud allegations. Cook is currently fighting to retain her seat, with the Justice Department investigating the claims. Analysts warn that if Trump succeeds, it could open “Pandora’s box” and shake market confidence in the Fed’s independence.
