Washington (AFP) – Donald Trump’s pick to join the US Federal Reserve said Friday that he did not speak to the president about how to vote on interest rates ahead of the central bank’s meeting this week. In an interview with CNBC, Stephen Miran said that “the president called me to say ‘congratulations.’ He didn’t ask me to do any particular actions. I didn’t commit to doing any particular actions.” He said that he would carry out “independent analysis” based on his interpretation of the economy.
Miran was the sole dissenter to the Fed’s decision this week to cut interest rates by a quarter point, instead favoring a bigger half-point reduction — more in line with Trump’s frequent demands for slashing rates. He said he would give a “full accounting” for his economic views on Monday. Asked Friday about his decision, he said: “I don’t see any material inflation from tariffs. I see no evidence that it’s occurred.” The Fed typically holds rates at a higher level to rein in inflation, and policymakers had kept rates unchanged for most of the year as they monitored the effects of Trump’s tariffs on prices.
Miran’s swift arrival to the Fed came as Trump ramped up pressure on the independent central bank with repeated calls for large rate cuts. Miran had been chairing the White House Council of Economic Advisers prior to joining the bank, and was confirmed by the US Senate on Monday night. He was sworn in just before the rate-setting meeting started early Tuesday. He told CNBC that he hopes to persuade some Fed colleagues of his views.
Miran fills a term that ends January 31, replacing another Fed governor who resigned early. But his call to take a leave of absence rather than step down from his White House role drew sharp criticism from Democratic lawmakers amid worries about threats to Fed independence. Miran said the short tenure was his reason for not resigning from the CEA: “If the President told me that I was going to stay in the seat past January I would just resign immediately.”
Fed policymakers noted the weakening labor market as they announced their first rate cut of the year Wednesday, penciling in two more cuts this year. All eyes were also on Fed Governor Lisa Cook’s legal challenge against Trump’s move to fire her this week. She has so far managed to remain in place while her lawsuit plays out.
© 2024 AFP
