U.S. President Donald Trump's nomination to the Federal Reserve Board of Governors, economist Stephen Miran, was approved by the Senate in a narrow vote on Monday evening.

Miran's appointment to the Fed board was approved in a 48-47 vote, with the confirmation now allowing him to participate in the Fed's September 16-17 meeting.

Miran was nominated by Trump to fill a seat abruptly vacated by former Fed governor Adriana Kugler, with his term set to expire in January 2026, when the seat's original term ends.

Miran currently serves as the Chair of the Council of Economic Advisers (CEA), and has declined to step down from the role when serving with the Fed. He instead suggested taking an unpaid leave from the CEA while serving with the Fed.

But this move sparked some concerns over Miran's independence in his Fed role, especially given his proximity to the White House.

Senator Lisa Murkowski, the sole Republican who voted "no" on Miran's nomination, cited concerns over the Fed's independence.

Still, Miran's nomination gives Trump a greater presence on the Fed's seven-member board, with two other governors also being holdovers from his previous term.

Trump has repeatedly called on the central bank to cut interest rates aggressively this year, with his attempts to gain more influence over the board also being viewed as a potential furthering of this agenda.

But this in turn has raised concerns over the independence of the Fed, which has traditionally operated outside the sphere of political influence. Trump had in late-August attempted to fire Fed Governor Lisa Cook over allegations of mortgage fraud, although an appeals court recently ruled that the president did not have cause to do so. Trump signaled that he will take the case to the Supreme Court.

The Fed is widely expected to cut interest rates by at least 25 basis points this week, amid some signs of cooling in the labor market. But the central bank's stance on future easing remains uncertain, especially in the face of sticky domestic inflation.

Source: Investing.com