Will Trump's Fed pick be independent? He doesn't plan to resign as US president's adviser

In a blatant conflict of interest, Stephen Miran, the nominee for a Federal Reserve governorship, has said he will not resign as a senior economic advisor to US President Donald Trump. He serves as the Chairman of the Council of Economic Advisers (CEA) at the White House.

In a hearing at the Senate, Miran said he will function independently despite keeping the job at the White House. He said he will go on unpaid leave instead of resigning from his post at the White House.

Miran further said, “My opinions and decisions will be based on my analysis of the macroeconomy and what’s best for its long-term stewardship. The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability.”

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Trump has nominated Miran to fill the vacancy at the Federal Reserve Board of Governors created by the resignation of Adriana Kugler. The presence of a governor who will remain an advisor to the president will compromise the independence of the Fed. The situation will be all the more concerning as Trump has gone after the Fed since the beginning of his second term, repeatedly bashing Chair Jerome Powell for not cutting interest rates to his liking.

Democratic Senator Andy Kim flagged the compromise of the Fed’s independence and said that Miran could “very well be continuing to act in a way that is in the political interest of the president because you know he is going to be your future boss again at the White House”.

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There are seven governors at the Fed, including the chair, and they join five regional federal reserve bank presidents to set the monetary policy by a majority vote at the Federal Open Market Committee (FOMC). The Fed governors and chair are nominated by the president and confirmed by the Senate.

Even as Miran has dubbed his dual roles —the Fed governorship and the job at the White House— as business as usual, such a system has not existed in around 90 years. The last time that such a dual appointment was in place was in 1936.