• Senate confirms Stephen Miran to the Federal Reserve's Board of Governors with a 48-47 vote.
• Miran's appointment raises concerns about the Fed's independence and Trump's influence over monetary policy.
• The Fed is expected to vote on a key interest rate cut during their upcoming policy meeting.

The U.S. Senate confirmed Stephen Miran as a member of the Federal Reserve's Board of Governors, granting President Donald Trump additional influence over the crucial institution just before a significant policy meeting. Miran was confirmed in a tightly contested 48-47 party-line vote, which fills a vacancy created by the resignation of Adriana Kugler. This swift confirmation process took less than six weeks, a notable departure from the typical lengthy timeline for such nominations, as reported by Reuters and CBS News.

Miran's entry into the Fed marks a historic moment as he will be the first sitting White House official on the board since its current formation in the 1930s. This appointment has sparked concerns regarding the traditional independence of the Federal Reserve. Critics assert that Miran's dual roles may undermine the central bank's credibility, with Democratic senators expressing fears that he may act as a "puppet" for Trump, according to BBC and Channel News Asia.

As the Federal Open Market Committee (FOMC) begins its two-day policy meeting, expectations are high that the Fed will approve a 25-basis point interest rate cut to stimulate a weakening labor market. Analysts speculate that Miran may lean towards a more significant rate reduction than what markets have anticipated, although the specifics of his vote remain uncertain. His confirmation comes at a critical time, especially given Trump's ongoing pressure on Fed Chair Jerome Powell regarding rate policies, as noted by India Times and CBS News.

Miran’s decision to take a leave from his role as chair of the White House's Council of Economic Advisers while serving at the Fed raises further questions about the potential blurring of the lines between the executive branch and the central bank. This unprecedented arrangement underscores Trump's attempts to reshape the Fed in line with his economic agenda. Furthermore, the ongoing controversy over the possible removal of Fed Governor Lisa Cook adds another layer of complexity to the prevailing political dynamics at the Fed, as detailed in various reports from Reuters and India Times.