Warren Questions Fed Nominee’s Independence at Hearing
During a recent confirmation hearing, Senator Elizabeth Warren, a Democrat from Massachusetts, expressed concerns regarding Stephen Milan, a nominee for the Federal Reserve. She suggested that his responses might align more with loyalty to President Trump than with an independent stance.
Warren specifically inquired whether Milan believed Trump had lost the 2020 presidential election. Milan sidestepped the question, noting that “Joe Biden has been recognized by Congress as President of the United States.”
Next, Warren probed Milan about allegations that the Bureau of Labor Statistics (BLS) had manipulated recent employment data. She referenced Trump’s claims that the BLS had falsely reported figures to undermine him. In response to a disappointing job report, which showed only modest growth, Trump had dismissed BLS chief Erica Mantelfer without offering any concrete evidence of data manipulation.
Milan pointed out shrinking survey response rates, which he argued have compromised the reliability of job reports in recent years. “The quality of data is steadily deteriorating,” he remarked.
Warren concluded her questioning by asking about the impact of Trump’s tariffs on rising prices. Milan replied, “As a result of the tariffs, there was no detectable increase in total price levels.” However, many economists contend that price hikes related to tariffs have started to surface, while some suggest that companies might be using tariffs as a pretext to increase prices beyond just cost-related pressures.
Milan is expected to receive smooth confirmation from the GOP-led Senate, moving into the position previously held by former Fed governor Adriana Kugler, whose term has exceeded four months.
President Trump has indicated he might nominate Milan for a longer tenure on the Federal Reserve Committee, which serves a staggering 14-year term meant to insulate members from political influences. “We just put a very good guy in one position,” said Trump last week, seemingly referring to Milan, “We might switch him to the other – it’s long-term – and we’ll choose someone else.”
