Trump’s Fed pick Stephen Miran says he will keep White House job

President Donald Trump’s pick to fill a Federal Reserve vacancy said he did not plan to resign from his White House role, if confirmed, alarming Democrats who said his elevation would bring the president closer to controlling the central bank.

Stephen Miran, currently chief of Trump’s Council of Economic Advisers, told lawmakers at his confirmation hearing on Thursday that he intended to take a leave of absence from the White House, given the short term nature of the Fed post.

He assured them that he would act independently if confirmed.

But he demurred when Democrats demanded he prove his independence by going on the record saying Trump had lost the 2020 election.

He also ducked questions asking him whether the president was right when he claimed that officials had faked jobs data for political reasons and on his past recommendations for Fed overhaul, including warnings against naming political figures to the board.

Senator Elizabeth Warren, a Democrat, said Miran would be seen as a “puppet” who would not be trusted as an independent voice.

“You have made clear that you will do or say whatever Donald Trump wants,” she told him. “That may work in a political position but it will take an axe to Federal Reserve independence.”

Miran called the independence of the central bank “paramount” and said he had not been asked by anyone at the White House to commit “formally or informally” to lowering interest rates.

“The independence of the Federal Reserve is critical to delivering superior long-run outcomes for the economy,” he said.

Miran, who trained as an economist at Harvard, was named by Trump to finish out the term of former governor Adriana Kugler.

Kugler resigned last month, a few months before her time on the board was due to end in January.

The opportunity came as Trump has put unprecedented pressure on the Fed to lower interest rates, toying with the idea of firing chair Jerome Powell and taking steps to fire another board member, Lisa Cook, over allegations of mortgage fraud.

She has denied those claims and challenged the president’s termination in court.

Economists say Trump’s campaign risks undermining the credibility of the bank, which is charged with keeping prices and employment stable and has been designed to set policy independently from the White House.

Lawmakers from both parties told Miran that it was critical that the bank’s governors determine interest rates without regard to politics.

But while Republicans widely indicated they would support his confirmation, Democrats said Miran’s decision to maintain his White House post was a sign he would be responsive to Trump’s demands.

Senator Jack Reed of Rhode Island called the arrangement “ridiculous”, while Senator Andy Kim of New Jersey asked: “Why do you even want this job for four months if you’re just hedging your bets and continuing your role at the White House?”

Miran said he would resign his White House post if he was nominated to serve a longer term.

Miran’s nomination is expected to advance to a full vote in the Senate, where Republicans hold a majority.

Senator John Kennedy, a Republican, urged Miran to ignore political considerations if confirmed.

“You’ve got to call them like you see them and ignore – nothing wrong with people giving their advice – but ignore all the rhetoric,” he said.

Warren said Republicans were ignoring the “elephant in the room” in their willingness to green-light Miran’s elevation.

“If we allow the Fed to become a political football, every American consumer, every American worker and every American business will pay a long term price,” she said.