Stephen Miran Stresses Federal Reserve’s Independence, Says He Has Not Been Asked To Lower Interest Rates

Stephen Miran, President Donald Trump’s nominee for the Federal Reserve Governor position left vacant by Adriana Kugler’s resignation, on Thursday stressed the importance of the central bank’s independence during the Senate Banking Committee’s confirmation hearing.

In prepared remarks at the beginning of his hearing, Miran underscored the importance of the Fed in safeguarding the flow of credit and liquidity, stating that this is central to the American banking system and, by extension, global capital markets.

“In my view, the most important job of the central bank is to prevent depressions and hyperinflations. Independence of monetary policy is a critical element for its success,” he added.

When asked by Democratic Senator Andy Kim if Miran was asked to commit, either formally or informally, to vote in support of lower interest rates, he said “no,” according to a Reuters report.

“The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability,” Miran added. He is a Trump ally and the Chair of the Council of Economic Advisors.

Miran said that while he will take a leave of absence from his White House role if he is confirmed for the four-month stint in place of Kugler, he would step down from the Council of Economic Advisors position if he is nominated and confirmed for a longer-term role on the Fed’s board, according to the report.

Meanwhile, U.S. equities gained in Thursday's midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.47%, while the Invesco QQQ Trust (QQQ) rose 0.51%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.33% at the time of writing.

Also See: Elizabeth Warren Says Trump Fed Nominee Stephen Miran’s ‘Loyalty Is Not To The American People’: Report

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