WASHINGTON (AP) — The Senate approved one of President Donald Trump’s top economic advisers to be seated on the Federal Reserve Governance Committee, which had a major impact on the White House two days ago. You are expected to vote in your favour Lowers major interest rates.
The vote to confirm Stephen Milan was primarily along the party line, 48-47. He was approved by the Senate Banking Committee last week All Republicans voted in favor, and all Democrats opposed.
Milan’s nomination has raised concerns about the Fed’s longstanding independence from daily politics after he said Committee hearing earlier this month He will continue his job as chairman of the White House Economic Advisors Council, but will take unpaid leave. Senate Democrats said such an approach is incompatible with the independent Fed.
Senate Democratic leader Chuck Schumer said Milan was “just a mouthpiece for Donald Trump in the Fed” ahead of the vote that “it’s not independence.”
The votes were along the party line, with Alaska Sen. Lisa Markovsky being the only Republican to vote against Milan.
Milan has completed an unexpired period that ends in January after Adriana Kugler I resigned unexpectedly August 1st from the board of directors. He said he would resign from his White House job if he was appointed long term. The previous president appointed advisers to the Fed, including former chairman Ben Bernanke, who served in President George W. Bush’s administration. However, Bernanque and others left their White House jobs when they joined the board.
Listening to on September 4th, Milan said, “I will act independently, based on a personal analysis of economic data, as always with the Federal Reserve.”
Last year, Milan criticized what he called the “revolving door” of officials between the White House and the federal government. He co-authored papers With Daniel Katz, a conservative Manhattan Institute. Katz is currently the Chief of Staff of the Ministry of Finance.
Milan’s approval will arrive when Trump’s efforts to shape the Fed arrive dealt with retreat Other places. He wants Fed Fed Gognerer Lisa Cookwas appointed by former President Joe Biden for a term ending in 2038. Sued to block She won the fire and first round in federal court after a judge ruled that the Trump administration had no proper cause to rule her out.
The administration appealed the ruling, but the appeals court rejected the request late Monday.
Members of the Fed’s board vote for all interest rate decisions and oversee the country’s financial system.
As the economy enters an uncertain and difficult time, jockeys around the Fed are occurring. inflation I’m staying stubborn It exceeds the central bank’s 2% target, but the economists Trump feared isn’t rising much First sweep tariffs For almost all imported products. The Fed usually fights worsening inflation by increasing borrowing costs or at least continuing to raise them.
At the same time, there is employment It’s been quite weak And the unemployment rate still rose to 4.3% last month. When unemployment rates rise, central banks often take the opposite approach, lowering fees to drive more borrowing, spending and growth.
Economists predict that the Fed will lower the key rate from 4.3% to about 4.1% after the two-day meeting concluded on Wednesday. Trump is calling for deeper cuts.
