• Senate holds confirmation hearing for Stephen Miran, Trump's nominee for the Fed.
• Democrats express concerns over independence of the Federal Reserve with Trump's influence.
• Miran vows to maintain Fed's independence despite remaining in White House advisory role.
• Interest rates are expected to be cut, with Miran's confirmation likely influencing decisions.
• Republicans show broad support for Miran's nomination, signaling a shift in Fed governance.

President Trump's nomination of Stephen Miran for a seat on the Federal Reserve board was highlighted by a confirmation hearing that underscored fierce partisan divides over the central bank's independence. Democratic senators challenged Miran on whether he would comply with presidential directives in setting interest rates, with Senator Elizabeth Warren actively criticizing the administration's approach. "The committee should be putting our efforts towards stopping Trump's reckless takeover of the Fed," she stated, emphasizing fears that the independence of the central bank is under threat, according to NPR and ABC News.

During the hearing, Miran, who serves as the chairman of the president's Council of Economic Advisers, expressed his commitment to maintaining the Fed's independence while also taking an unpaid leave rather than resigning from his White House position, a decision that drew criticism from Democratic members. Warren, among others, highlighted how this dual role could compromise his impartiality. Miran stated, "If I’m confirmed... I will act independently as the Federal Reserve always does," although he acknowledged his ties to the president, according to LA Times and ABC News.

As Miran eyes confirmation to fill the seat left vacant by Adriana Kugler, who resigned to return to academia, Trump is simultaneously attempting to remove Fed board member Lisa Cook under contentious allegations of mortgage fraud that Cook is contesting in court. Trump's actions are seen as part of a broader strategy to install officials who align closely with his monetary policy aims, which include persistent calls for lower interest rates to stimulate economic growth, according to LA Times and NPR.

Skepticism among Democrats grew over whether Miran could maintain the political independence central to the Fed's mission, especially given Trump's vocal dissatisfaction with the current interest rate policies and his accusations against Fed Chair Jerome Powell. Miran, when pushed, acknowledged the legal framework that ensures Fed independence but refrained from taking a firm stance on the legitimacy of the 2020 election, stating only that Biden was "certified" as president, which did little to assuage concerns about his alignment with Trump’s views, according to NPR and ABC News.

The Senate Banking Committee appears somewhat divided, with several Republican senators expressing their support. Senator John Kennedy of Louisiana specifically questioned Miran about his independence, expressing concern over the potential for Miran to act as "Donald Trump's puppet," but seemed satisfied with Miran’s assurances of his independent stance and expertise on economic matters. This suggests that Miran is in a favorable position to secure confirmation, which could lead to him shaping future Fed policies deeply influenced by the current administration, according to LA Times and ABC News.