Trump's Federal Reserve board nominee is approved by Senate committee

WASHINGTON (AP) — A Senate committee on Wednesday approved the nomination of White House economic adviser Stephen Miran to the Fed's board of governors, setting up a likely approval by the full Senate, which would make Miran the third Trump appointee to the seven-member board.

The White House has pushed for an expedited Senate approval of Miran, who was nominated by President Donald Trump to replace former Fed governor Adriana Kugler, who stepped down Aug. 1. Miran would, if approved, simply finish her term, which expires in January. He may be approved in time for the Fed's meeting next week, when it is widely expected to reduce its key short-term interest rate.

The committee voted to approve Miran on partisan lines, 13-11, with all Democrats voting against confirmation.

Miran's nomination has raised concerns about the Fed's independence from day-to-day politics, particularly since he said during a hearing last week that he would keep his job as head of the White House's Council of Economic Advisers while on the Fed's board, a historically unusual arrangement. Presidents have nominated members of their staffs to the Fed's board before, but the nominees have always given up their White House jobs.

The vote comes a day after a federal court blocked Trump's effort to fire Fed governor Lisa Cook, who he has accused of mortgage fraud.

“The Federal Reserve was designed to make decisions free from political interference, guided by data and the long-term stability of our economy, not the political agenda of any one president," Sen. Mark Warner, a Democrat from Virginia, said in a statement before the vote. “Donald Trump has made clear he wants to tear down that independence, just as he has with so many of the institutions that have kept our democracy and our economy strong.”

Miran said he would step down from his White House position if he is chosen for a longer term. Yet he can remain on the board after Kugler's term ends in January, if no replacement is named. He has said in that case he would consider keeping his White House job even if he remains on the board after January, sparking fresh criticism from Democrats.