Senate committee approves Trump’s leading economist for the Federal Reserve board

Senate Panel Advances Trump’s Economist Nomination

The Senate Banking Committee held a partisan vote on Thursday, pushing forward the nomination of Stephen Milan, a key economist from President Trump’s administration, for a position within the Federal Reserve.

The vote concluded with a narrow 13-11 approval, with all Republican members supporting Milan and all Democrats opposing him.

His nomination is now set to proceed in the Senate, likely facing similar partisan divisions.

Milan, who has a background in economics from Harvard, previously chaired the White House Council of Economic Advisors (CEA) and had a role in the Treasury during Trump’s first term. He also contributed influential writings during Trump’s second campaign, reflecting the economic ideologies of the current administration.

Supporters praised Milan for his experience and leadership, noting his dedication to maintaining a strong and competitive American economy. His policies aim at bolstering domestic production and enhancing economic resilience.

In contrast, Senate Democrats expressed skepticism about Milan’s qualifications. Senator Elizabeth Warren from Massachusetts critiqued the nomination, alleging that President Trump seeks to dominate the Fed to evade responsibility for his economic shortcomings, with Senate Republicans backing him.

Trump has consistently expressed discontent with the Federal Reserve and its chair, Jerome Powell, particularly regarding interest rate management. Since taking office, Trump has accused Powell of artificially inflating the economy during his tenure and previously suggested that banks maintained low interest rates to favor his recognition during former President Biden’s administration.

During the confirmation hearing, Milan asserted that he would uphold the Fed’s independence in monetary policy decisions, claiming they would be derived solely from economic analysis.

However, Democrats questioned his independence, especially highlighting Milan’s unwillingness to resign from the White House if confirmed, and his failure to accept Trump’s defeat in the 2020 election as indicative of his loyalty.

Warren remarked, “Dr. Milan has already failed every independence test we can think of. He couldn’t even acknowledge that ‘Donald Trump lost the 2020 election.'”

She emphasized that the nomination appears to serve as a test of loyalty to Trump, suggesting that Milan’s future decisions would be influenced by his ties to the White House.