Senate approves Trump's controversial Fed Board pick

Core Points - The Senate committee approved the nomination of Stephen Miran to the Federal Reserve's board of governors, which is expected to be confirmed by the full Senate [2][4] - Miran's nomination raises concerns about the Fed's independence, as he intends to retain his position as head of the White House's Council of Economic Advisers while serving on the Fed [5][11] - The Fed is anticipated to reduce its key short-term interest rate in its upcoming meeting, amidst rising inflation and a recent increase in the unemployment rate [12][13][14] Group 1: Nomination and Approval Process - Stephen Miran was nominated by President Trump to replace former Fed governor Adriana Kugler, who resigned on August 1 [3] - The committee voted along partisan lines, with a 13-11 vote, all Democrats opposing the confirmation [4][10] - Miran's confirmation could occur before the Fed's meeting next week, where interest rate decisions will be made [8] Group 2: Concerns Over Independence - Miran's plan to keep his White House role while serving on the Fed is historically unusual and has drawn criticism from Democrats [5][11] - Concerns have been raised regarding the potential erosion of the Fed's independence from political influence, particularly in light of Trump's previous actions [11] Group 3: Economic Context - The economy is facing challenges, with inflation remaining above the Fed's 2% target and a recent rise in the unemployment rate to 4.3% [12][13] - The Fed is expected to consider risks to the job market, which may lead to rate cuts, with Wall Street anticipating three quarter-point reductions this year [14]