Miran Takes Seat on Fed Board Just Before the Rate Decision

Core Viewpoint - The Federal Reserve meeting is ongoing, with Lisa Cook participating despite potential legal challenges, and her views on monetary policy are expected to align closely with Fed Chair Jay Powell's stance on interest rates [1][2][5]. Group 1: Lisa Cook's Role and Perspectives - Lisa Cook is confirmed to be at the Fed meeting, and her historical tendency has been to side with the chair, indicating a dovish approach to monetary policy [1][4]. - It is anticipated that Cook will support a 25 basis point rate cut, reflecting her alignment with Powell's views [5]. - Cook has expressed concerns about the labor market's health, noting a rise in unemployment and a slowdown in hiring, although she has not provided extensive commentary on the subject [6][7]. Group 2: Steven Byron's Influence - Steven Byron's presence at the meeting is viewed as a potential wildcard, with speculation that he may dissent if the Fed opts for a 25 basis point cut, advocating instead for a 50 basis point reduction [8][9]. - Byron's dual role as chairman of the Council of Economic Advisers while participating in the Fed meeting raises questions about his independence and the potential for conflicts of interest [9][10]. Group 3: Independence and Interactions - The independence of Fed members is under scrutiny, particularly regarding the interactions between Fed officials and the White House, especially with Byron's connections to the Trump administration [15][16]. - Historically, Fed chairs have maintained a distance from the executive branch, with limited direct communication with presidents [17]. - Concerns about the revolving door between the Fed and the White House have been highlighted, with examples of past officials transitioning between roles [18].