Fed Holds Meeting with Newly Appointed Trump Governor and One He Aims to Remove

WASHINGTON – Following a late-night Senate vote and a consequential decision, the Federal Reserve’s significant meeting on interest rate policy commenced Tuesday, featuring both a newly appointed Trump administration member and an official the White House aims to dismiss.

Stephen Miran, a leading White House economist, swiftly confirmed by the Senate late Monday, took his oath on Tuesday as a member of the Fed’s board of governors. He is set to cast his vote on the Fed’s interest rate decision slated for Wednesday, with the central bank expected to lower its key rate by a quarter-point. Miran might advocate for a more substantial rate cut.

Also present at the meeting is Fed governor Lisa Cook, whose potential dismissal has been sought by the Trump administration in an effort to reshape the Fed, which is traditionally independent from daily political influence. An appeals court late Monday supported an earlier decision stating that Cook’s dismissal breached her due process rights. Previously, a lower court had ruled that President Donald Trump lacked sufficient “cause” to remove Cook.

Given the presence of both officials, the Federal Reserve’s two-day meeting might be more confrontational than usual for an organization that usually strives for consensus. There could be up to three out of seven governors dissenting from a decision to decrease rates by a mere quarter-point, in favor of a half-point reduction. This scenario would represent the first instance since 1988 of three governors dissenting. Economists also predict that one among the five regional Fed bank presidents, who also vote on rates, might oppose in favor of keeping rates steady.

On Tuesday, the White House said it would appeal Cook’s case to the Supreme Court, though did not specify when.

“The President lawfully removed Lisa Cook for cause,” White House spokesman Kush Desai said. “The Administration will appeal this decision and looks forward to ultimate victory on the issue.”