Stephen Milan, nominated by President Trump to join the Federal Reserve, received approval from the Senate Banking Committee on Wednesday. This brings him closer to confirmation just ahead of next week’s central bank meeting.
The committee voted 13-11, following party lines, to advance Milan’s nomination to the Senate as a whole.
Trump criticized Milan, who leads the Economic Advisors Council (CEA), for taking the place of Biden’s appointee, Adriana Kugler, who resigned unexpectedly last month.
If confirmed by the full Senate, Milan is set to serve until the end of Kugler’s term on January 31.
Milan intends to take an unpaid leave from the CEA upon joining the Fed, which has drawn criticism from Democrats who believe he should resign from his previous position.
Some critics argue that Milan’s appointment threatens years of efforts to maintain the Fed’s independence in overseeing U.S. monetary policy.
Trump remarked that Milan “will retain the vacant federal governor position while continuing to search for a permanent replacement.”
The president has been pressuring the Fed for several months to lower its benchmark interest rate targets.
His argument seems to emphasize that “Just no inflation!!” should prompt a reduction in rates.
Trump has clashed publicly with Powell, especially as the administration looks to address nearly $9 trillion in U.S. debt.
The president also claims that inflation is manageable, hence raising interest rates is unwarranted.
It’s worth noting, however, that the Federal Open Market Committee, not Powell alone, holds the responsibility for setting interest rates.
Powell has expressed concerns about the uncertainty surrounding Trump’s tariff policy, defending the committee’s current stance on lower rates.
In addition to Powell, Trump has also targeted Governor Lisa Cook, another Biden appointee whom he attempted to dismiss last month.
This Tuesday, a judge temporarily blocked Cook’s dismissal while the case is being reviewed.
The president accuses her of mortgage fraud, a claim reportedly brought to light by Bill Palto, a federal housing finance agency director.
The Fed’s next policy meeting is scheduled for September 16-17, during which central bank officials are expected to reassess interest rates amid signs of a weakening job market.
