Trump’s Fed Pick Stephen Miran Faces Senate Grilling Next Week—Here’s Why It Matters

Washington braces for political fireworks as Stephen Miran—Trump's controversial Fed nominee—heads to Capitol Hill. The hearing could reshape monetary policy for years.

Behind the Scenes

Miran’s background hints at deregulatory leanings—exactly what markets are watching. Senate Democrats will likely hammer his stance on banking oversight and digital currency frameworks.

Why Crypto Watchers Care

A Miran confirmation might signal softer regulatory pressure on fintech and crypto ventures. Traders are already speculating—because when the Fed sneezes, Wall Street catches a cold (and somehow still bills you for the tissue).

The Bottom Line

Next week’s hearing isn’t just political theater—it’s a proxy war for the soul of American finance. Brace for volatility.

Trump’s attempt to fire Cook complicates confirmation plans

Lisa was removed this week over claims she committed mortgage fraud. Trump said in a letter that he posted on his own social media account that the allegations were “sufficient cause” to justify her removal.

Lisa, a Joe Biden appointee, rejected the claim and vowed to sue in court, saying “no cause exists under the law” and that Trump “has no authority to” take her off the board.

Trump’s decision has drawn sharp criticism from Democrats and caution from some Republicans, especially those who’ve historically defended the Fed’s independence. It’s the first time in history that any president has tried to remove a Fed governor “for cause,” and many lawmakers aren’t willing to let it slide.

The WHITE House, meanwhile, is pushing to get Stephen confirmed quickly, hoping he can participate in the Fed’s mid-September meeting. But the Cook situation is making that a tall order. With a legal battle now underway and growing unease in Congress, even some of Trump’s Republican allies are starting to hesitate.

Lawmakers raise alarm over independence of Fed

Democrats are pressing hard on the issue of central bank independence, hoping to stop the confirmation unless Trump backs off his effort to remove Lisa.

“Four Senate Republicans could preserve Fed independence if they refuse to MOVE any Trump Fed nominee until he stops trying to illegally fire Cook,” said Aaron Klein, former staffer on the Senate Banking Committee and current fellow at the Brookings Institution. “Fed independence is something created by Congress. It’s now time to see whether Congress will stand up for Fed independence.”

Federal Reserve spokespersons made that point before him on Tuesday, saying that governors can only be removed for cause, as laid out in the Federal Reserve Act, and that long-term appointments are designed to protect the Fed from political swings.

The Trump administration is moving to lock in a pro-White House majority on the Fed’s board. “We’ll have a majority very shortly,” Trump said Tuesday afternoon. “So that’ll be great.”

Not every Republican is on board. Senators Thom Tillis of North Carolina and John Kennedy of Louisiana, both members of the Banking Committee, have publicly supported the Fed’s independence in the past, especially when Trump had floated removing Jerome during his first term.

If even one or two Republicans break ranks, Stephen’s nomination could stall, unless he gets unexpected support from Democrats. Outside the Senate, House Republicans are opening a new line of scrutiny aimed directly at Lisa.

Dan Schneider, spokesperson for House Financial Services Committee Chair French Hill, said Tuesday, “Congress has a constitutional responsibility to provide oversight, and the Committee looks forward to examining the allegations” against her.

French has previously said he doesn’t believe the president has the legal power to fire Jerome either.

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