"The time has come to ban the revolving door between the White House and the Federal Reserve, two academics argued last year. Doing so would be critical to reducing the incentives for officials to act in the short-term political interests of the president, they wrote. Eight months ago, the two writers Dan Katz and Stephen Miran joined the Trump administration in senior roles."
"On Tuesday, Miran, the chair of the US Council of Economic Advisers, walked into the Fed as a governor. Strolling through the revolving door himself, Miran pledged during his confirmation hearing to preserve the Fed's independence, but made clear he would not resign from the White House, just take unpaid leave. Having expressed concern last year about the Fed's vulnerability to the short-term political interests of the president, Miran was rushed into his new seat on the central bank's board of governors."
A call to ban the revolving door between the White House and the Federal Reserve highlights risks of officials acting to serve short-term presidential political interests. Two academics who advocated this ban, Dan Katz and Stephen Miran, later joined the Trump administration in senior roles. Miran moved from chairing the US Council of Economic Advisers to serve as a Fed governor, pledging to preserve Fed independence while taking only unpaid leave rather than resigning. The appointment occurred amid pressure from the president to reshape the Fed, public demands for rate cuts, and concerns about political interference in monetary policy.
Read at www.theguardian.com
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