REED LEADS CALLS FOR FED'S MIRAN TO IMMEDIATELY END IMPROPER ARRANGEMENT AND RESTORE FED INDEPENDENCE

The following information was released by Rhode Island Senator Jack Reed:

Trump economic advisor and current Federal Reserve Governor Stephen Miran was nominated to a short, four-month term at the Federal Reserve that ended last Saturday, January 31. But Miran -- who took a leave of absence as chair of the White House Council of Economic Advisers in order to join the seven-member Federal Reserve Board, and who Trump nominated to try and erode the Fed's independence has indicated he plans to remain at the Fed indefinitely while remaining "on leave" from his White House position.

Today, U.S. Senators Jack Reed (D-RI) and Ruben Gallego (D-AZ) led their Senate Banking, Housing, and Urban Affairs Committee colleagues in calling on Federal Reserve Governor Miran to immediately resign from the Federal Reserve Board after his short term expired on January 31, 2026.

"During your confirmation hearing to be a Governor, you testified under oath that you would not resign as Chair of the President's Council of Economic Advisers because 'the term for which I am being nominated is a little bit more than four months.' This period is now up," the eleven Democratic Senators on the Banking Committee wrote. "You are serving in holdover status and have implied an intention to stay indefinitely ... Your extended tenure at the Federal Reserve has only compounded what was an improper arrangement from the outset, and this dual employment must end."

The Senators' letter articulates that Miran's voting record and public statements demonstrate a lack of independence from White House political pressure, with his support for aggressive rate cuts appearing to follow the President's demands rather than sound economic analysisdecisions that directly affect Americans' ability to find jobs, afford homes, and manage their credit card debt.

"Despite empirical evidence that inflation remains elevated and the labor market is weakening, your voting record appears to be a product of the President's pressure campaign to influence interest rates rather than sound analysis..." the Senators continued. "At worst, you are doing the President's bidding and threatening to put the nation on the same path of high inflation and high unemployment known as stagflation we experienced when President Nixon similarly co-opted the Federal Reserve."

"Your continued dual service at the Federal Reserve and the President's CEA puts the Federal Reserve's operations and our nation's economy at risk. We therefore request you put our Nation's economic well-being and the public's trust in the Federal Reserve over your political ambitions and the President's personal interests and immediately resign from the Federal Reserve," the Senators concluded.

In addition to Reed, Gallego, and Ranking Member Elizabeth Warren (D-MA), the letter was also signed by U.S. Senators and Banking Committee members Angela Alsobrooks (D-MD), Lisa Blunt Rochester (D-DE), Catherine Cortez Masto (D-NV), Andy Kim (D-NJ), Tina Smith (D-MN), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Mark Warner (D-VA).

Full text of the letter follows:

The Honorable Stephen I. Miran, Governor

Board of Governors of the Federal Reserve System

Constitution Avenue and 20th Street NW

Washington, DC 20551

Dear Governor Miran,

With the expiration of your term at the Federal Reserve over the weekend, we write to request that you resign from the Board of Governors, effective immediately.

During your confirmation hearing to be a Governor, you testified under oath that you would not resign as Chair of the President's Council of Economic Advisers because "the term for which I am being nominated is a little bit more than four months." This period is now up. You are serving in holdover status and have implied an intention to stay indefinitely. You recently said on Bloomberg TV that you "don't know" when your term will end and "wouldn't mind" staying. Your extended tenure at the Federal Reserve has only compounded what was an improper arrangement from the outset, and this dual employment must end.

Your service at the Federal Reserve has apparently lacked independence from the White House. During your confirmation process you committed to "act in an independent manner based on my own analysis of the economy, of economic data, inflation, employment and the effects of economic policy thereon." Despite empirical evidence that inflation remains elevated and the labor market is weakening, your voting record appears to be a product of the President's pressure campaign to influence interest rates rather than sound analysis. For example, your support for jumbo rate cuts of 150 basis points in 2026 follows the President's public calls for dangerously expansionary monetary policy. Such a significant cut is rarely seen outside a recession.

Your speeches have touted Trump's immigration and trade policies in such a way as to appear beholden to the President while he controls your future employment at CEA. At worst, you are doing the President's bidding and threatening to put the nation on the same path of high inflation and high unemployment known as stagflation we experienced when President Nixon similarly co-opted the Federal Reserve.

Your dual tenure at the Federal Reserve and CEA also conflicts with your own support for stronger firewalls between the central bank and political positions elsewhere in the Federal government. In a paper published in 2024, you proposed specific reforms to shut the revolving door, including prohibiting any Governor from returning to the executive branch for four years following their service at the Federal Reserve.

Americans depend on the Federal Reserve to make sound, independent decisions on monetary policy free from political pressure. These are decisions that affect Americans' ability to find a job, afford a home, and pay off their credit cards. Your continued dual service at the Federal Reserve and the President's CEA puts the Federal Reserve's operations and our nation's economy at risk. We therefore request you put our Nation's economic well-being and the public's trust in the Federal Reserve over your political ambitions and the President's personal interests and immediately resign from the Federal Reserve.