Washington (AFP) – Donald Trump’s pick to join the US Federal Reserve, Stephen Miran, 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, Miran stated, “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 emphasized 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 larger half-point reduction, which aligns more closely with Trump’s frequent demands for slashing rates. He mentioned that he would provide a “full accounting” for his economic views on Monday. When asked about his decision, he said, “I don’t see any material inflation from tariffs. I see no evidence that it’s occurred.” Traditionally, the Fed maintains higher rates to control inflation, and policymakers had kept rates unchanged for most of the year while monitoring the effects of Trump’s tariffs on prices.
Miran’s rapid appointment to the Fed coincided with Trump intensifying pressure on the independent central bank through repeated calls for significant rate cuts. Previously, Miran had been chairing the White House Council of Economic Advisers before joining the bank and was confirmed by the US Senate on Monday night. He was sworn in just before the rate-setting meeting commenced early Tuesday. He expressed hope to persuade some Fed colleagues of his perspectives.
Miran fills a term that ends on January 31, replacing another Fed governor who resigned early. However, his choice to take a leave of absence rather than resign from his White House position drew sharp criticism from Democratic lawmakers, raising concerns about potential threats to Fed independence. Miran explained that his short tenure was why he did not resign from the CEA, stating, “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 on Wednesday, planning two more cuts for the year. Meanwhile, attention is also on Fed Governor Lisa Cook’s legal challenge against Trump’s move to fire her this week. She has thus far managed to remain in her position while her lawsuit proceeds.
© 2024 AFP
