Federal Reserve board nomination: Senate panel clears Trump pick Stephen Miran; Democrats flag loyalty test risk

A US Senate committee on Wednesday advanced the nomination of President Donald Trump’s choice for the Federal Reserve board, Stephen Miran, despite concerns that he may not resign from the White House even if confirmed.Miran, who chairs the White House Council of Economic Advisers (CEA), cleared the Senate Banking Committee by a narrow 13-11 vote, with Democrats opposing the move, AFP reported. The approval paves the way for his full Senate confirmation, which could allow him to join the central bank’s Federal Open Market Committee (FOMC) in time for its September 16–17 policy meeting, AFP reported.Senator Elizabeth Warren, the top Democrat on the banking committee, criticised the nomination, warning it “sets up an obvious Trump loyalty test.” She argued that Miran’s rate votes could decide whether he is able to return to the White House role once his short Fed term ends.If confirmed, Miran would fill a short-term Fed vacancy lasting slightly over four months until January 2026. At his hearing, Miran said he only intended to take a leave of absence from the CEA during that period but later told lawmakers he would resign if nominated and confirmed for a longer term.Democratic lawmakers issued a letter after his testimony, warning that any decisions he took at the Fed would be seen as an attempt “to satisfy the demands of the President” and safeguard his White House position. Warren also expressed concern that he had not guaranteed to step down at the end of the short term if confirmed.The Fed’s seven-member board of governors holds 12 voting seats on the FOMC, which sets US interest rates. Since cutting rates in December, the Fed has kept policy steady this year while monitoring the effects of Trump’s sweeping tariffs on inflation. Analysts now expect a rate cut next week, citing limited tariff impact on prices but growing weakness in the jobs market.