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Author: Li Xiaoyin, Wall Street News
Trump’s economic adviser Stephen Miran officially joined the Fed as director.
On Monday night local time, Milan, the candidate for Federal Reserve nomination by Trump, passed a final vote in the Senate to confirm his position as director.This means he will be able to catch up with the Federal Open Market Committee (FOMC) interest rate meeting that began Tuesday and has the right to vote.
The market generally expects that the Federal Reserve will cut interest rates by 25 basis points at this meeting.However, Milan’s entry may change the voting landscape, with some officials including Fed Director Christopher Waller,It is believed to support a 50 basis points or more rate cut, consistent with the White House’s appeal.
The appointment comes as the Trump administration continues to put pressure on the Federal Reserve to significantly relax its monetary policy.Meanwhile, the White House is also trying to prevent another director, Lisa Cook from attending this week’s meeting through legal means.
Milan will fill the vacancy left by Adriana Kugler after his resignation in August, with his term ending in January 2026.
Vot the day after confirming employment?Fastest in history
The timing of the confirmed vote was extremely compact, creating possibilities for Milan to participate in the FOMC meeting, but also brought procedural challenges.
Generally speaking, the entire process from Senate approval to formally sworn in and seated at the FOMC conference table usually takes several days.If Milan can complete all the procedures before Tuesday’s meeting begins, he will set an all-time record.
According to Barron’s analysis, since the implementation of the Banking Act in 1935,Never had a Fed director attend an interest rate decision meeting immediately the day after confirmation.The fastest record was set in 1986 by H. Robert Heller, who was confirmed on Saturday and attended the meeting that began on Tuesday.
It is not clear whether Milan can have time to submit a summary of his economic forecast to include it in the post-meeting materials.
Fed’s independence is eroding concerns
Milan’s joining comes as President Trump openly puts pressure on the Federal Reserve.
Trump posted on social media Truth Social earlier Monday, using his nickname to Fed Chairman Powell that “’Too Late’ must cut interest rates immediately, and it will be more intense than he thought.”
Trump has been calling for interest rates to be lowered to 1% levels, a level that usually only occurs during economic crisis, aimed at stimulating growth and reducing government borrowing costs.
In terms of policy tendencies, Milan is seen as a “hawkish” to “dove” character who may promote more radical interest rate cuts..The mainstream expectation of the market is a 25 basis point cut, but if officials such as Milan and Waller vote for 50 basis points, it may trigger more intense debate within the FOMC and bring uncertainty to the final policy decision.
As an ally of Trump,Milan’s nomination raises concerns about whether it can maintain Fed independence.Senate Minority Leader Chuck Schumer made a clear objection on Monday, saying:
“Mr. Milan’s nomination is bad news for every American who is suffering from Trump’s catastrophic economic agenda. He will only be Trump’s mouthpiece in the Fed.”
Earlier, Milan also said at a confirmation hearing that he planned to take unpaid leave from the position of chairman of the White House Economic Advisory Committee while serving in the Fed, but retain the position.The arrangement is contrary to a previous research report he co-wrote for the Manhattan Institute, which called for measures to prevent the “revolving door” between the White House and the Central Bank.
The dispute over the seats of the board of directors is taking place simultaneously
While Milan officially entered the Federal Reserve, the White House’s legal battle with another current director, Cook, is also in tension.
Trump fired Cook last month on suspicion of mortgage fraud, but she denied the allegations.Last week, a federal judge temporarily blocked Trump’s sacking order, paving the way for Cook to attend this week’s FOMC meeting.
In response, the U.S. Department of Justice lawyers have filed an emergency motion in the Court of Appeals to suspend the lower court’s ruling by Monday to prevent Cook from attending the meeting.
The multi-line struggle for board seats has made this week’s FOMC meeting not only an economic decision on the direction of interest rates, but also a political focus related to the independence of the Federal Reserve and its future personnel pattern.
