With none but his wife and President Trump looking on, Stephen Miran swore an oath that put him at the center of American economic power: In one fell swoop, he joined a panel whose most powerful members had convened just an hour earlier to deliberate the nation’s financial future.
The US Fed kicked off its vital two-day meeting on Tuesday 5th May, 2025 shortly after Miran was sworn in as a governor to President Trump. his confirmation by the Senate the night before had been by a slim margin, but it was sufficient to give him an immediate vote on the interest-rate-setting Federal Open Market Committee (FOMC).
A Meeting Shadowed by Pressure
For the most important outcome of the meeting, there is scant doubt. Policymakers are expected to deliver the first rate cut of the year on Wednesday, May 6th aimed at propping up a faltering job market. However, the standard economic calculus is upended by a strong sense of politics in the air. President Trump has publicly escalated pressure on Fed Chair Jerome Powell to cut rates, telling reporters Tuesday the central bank should “listen to smart people like me.”
To many, Miran’s arrival is when the president’s voice steps into the room. But, as one of twelve voting members, his potential sway over the committee to make the still-deeper cuts Trump desires is an open question. His appointment is a symbol, a test of the Fed’s vaunted independence.
A Leave of Absence and Legal Absence
Miran’s appointment itself is unconventional. He is going on leave from his post as chairman of the White House Council of Economic Advisers rather than resigning, a decision that has garnered criticism. He replaces Adriana Kugler who resigned early, so his term will exceed four months.
His swearing-in sets a jarring juxtaposition to the battle being waged across the institution. Fed Governor Lisa Cook, a Biden appointee, is fighting her removal by Trump for mortgage fraud. While a federal appeals court ruled late Monday that she could stay in her job while he legal challenge still plays out, the White House has vowed to carry the case all the way to Supreme Court. And so she is here, now sitting in on the meeting.
The Delicate Balance of Power
The Fed has kept its benchmark lending rate in a range between 4.25% and 4.50% since making its last rate cut in December, waiting to see how the economy would respond to new tariffs. Markets expect a widely anticipated cut of 0.25% on Wednesday. But investors will be listening for more than a number; they’ll be listening for the tone and confidence of an institution negotiating a political storm.
The real story isn’t the rate cut we’re all expecting; it’s the human drama going on inside the marble halls of the Fed. It is a tale of oaths taken and roles contested, of commercial decisions versus political demands. A reminder that the most powerful of institutions do have some human force behind them — we hold up our convictions and demand respect on all fronts because they take no prisoners when playing their game.
