Trump's Fed pick gets blasted for planning to stay at the White House

"His answer instantly triggered alarm bells about the Fed's independence, suggesting that the central bank could ultimately become subservient to Trump's whims instead of its congressional mandates to keep prices stable and maximize employment. Political control of the Fed could erode the faith that the American population and investors worldwide place in the U.S. economy, which could threaten global markets and national prosperity."

"Miran later said he would only resign from the Republican administration if he were nominated for a longer term at the Fed. Democrats blasted Miran's plan to keep his day job at the White House. "Your independence has already been seriously compromised," Sen. Jack Reed, D-R.I., said. "You are going to be technically an employee of the president of the United States but an independent member of the board of the Federal Reserve. That's ridiculous.""

"Miran's hearing reflected the broader battle over Trump's efforts to gain control of the Fed. Because of the possible negative impacts on the economy, the Fed has tried to act based on the economic data rather than electoral considerations. Trump, however, has engaged in a prolonged campaign of pressuring and mocking Fed Chair Jerome Powell for not cutting the benchmark interest rate to Trump's liking, a move that could end up pumping more money into the economy and creating greater inflationary risks."

Stephen Miran, nominated to fill an unexpired Federal Reserve Board term, said he would remain a White House employee and take an "unpaid leave of absence" as chair of the White House Council of Economic Advisers if confirmed. He said he would resign only if nominated for a longer Fed term. The response raised concerns that the Fed's independence could be compromised and that political control could erode investor and public confidence, threatening global markets and prosperity. Democrats criticized the arrangement. Miran's hearing reflected a broader battle over Trump's efforts to influence the Fed, including public pressure on Chair Jerome Powell to cut interest rates.

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