In the short term, 1 vote out of 12 is not going to make a difference. If I am understanding things correctly, the Fed needs to vote on important policy decisions, and 1 vote out of 12 is nowhere close to being enough to sway the outcome.
I think the global market is going to see and understand that too, so in the short term, there might only be some minor turbulance. And then their outlook will depend on how the Fed conducts itself with 1 pot stirrer out of 12.
IMO this is different from the SCOTUS bcos the SCOTUS already had a mix of progressive and conservative judges to begin with, and Trump had managed to appoint an additional 3 conservative judges to significantly tip the scale. That is not to say the Fed officials didn't come from different backgrounds and beliefs in economic policies. But as far as I can remember, the Fed has been acting very responsibily in a technocratic manner.
The obvious danger is how many more members Trump (via the currently useless Senate) will manage to appoint into the Fed. The more Trump is able to stack the Fed like he had with the SCOTUS, the more damaging it will be for the credibility of the Fed. But this also brings the outcome of next year's mid terms into question. If the Democrats are able to turn things around and regain control of the House & Senate, then the Fed's contamination can be (will be) stopped.
Quote:
Originally Posted by pastarocket
Your thoughts on a Trump employee with voting power on interest rate changes as part of monetary policy at the U.S. federal reserve bank?
Anyone nervous about their American stock investments now?
https://www.cnn.com/2025/09/15/busin...ederal-reserve
The Senate voted 48-47 to confirm Miran.
Once sworn in as a Fed governor, Miran will immediately be one of 12 officials voting on interest rate decisions. Miran was nominated to fill the remaining time in former Fed Governor Adriana Kugler’s term, which was set to expire in January 2026. Miran has said he will not resign from his influential post at the White House while he serves on the Fed’s board, instead taking unpaid leave.
The Fed, by law and tradition, has remained independent and nonpartisan. Now for the first time in its 111-year history, a member of the Fed’s Board of Governors is also technically an employee of the president. During his Senate confirmation hearing, Miran said he was advised by an attorney that doing so is legal and that he plans to carry out his duties as a Fed governor independently.
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