The Senate Banking Committee is expected to vote on Miran’s nomination before a scheduled hearing at 10:00 AM EDT. With Republicans holding a narrow 13-11 majority on the panel, the vote is likely to advance despite unanimous Democratic opposition.

However, it remains uncertain whether Miran will be confirmed in time to take part in the Fed’s upcoming policy meeting on September 16-17. Due to procedural rules in the Senate, the earliest a full confirmation vote could occur is Monday, leaving little room to complete the necessary steps for him to be sworn in ahead of that meeting.

Still, with a 53-47 Republican majority in the Senate, his confirmation is considered likely—even if delayed. Once seated, Miran would join two other Trump-appointed Fed governors who supported rate cuts at the last policy meeting, differing from the majority who voted to maintain the benchmark rate at 4.25%-4.50%.

At the same time, Trump is attempting to open another spot on the seven-member board by trying to remove Governor Lisa Cook, alleging misconduct related to mortgage fraud—a claim she denies and is currently contesting in court. For now, she continues in her role while the case is under judicial review.

Many central bank officials, including Fed Chair Jerome Powell, have indicated a possible shift toward lowering interest rates due to signs of a weakening labor market. Recent data has highlighted a slowdown in job growth, a trend that began even before Trump’s current policies took effect.

Trump, however, has called for more aggressive and faster rate reductions than the gradual pace expected by financial markets and some economists, who cite persistent inflation pressures as a reason for caution.

During his recent Senate hearing, Miran did not take a firm stance on interest rate cuts but expressed confidence that inflation is easing and that tariffs are unlikely to reverse that trend—views that generally align with a more accommodative monetary stance.

Analysts suggest that Miran’s addition to the board would tilt the Fed slightly more dovish, as he would replace a more hawkish member, Adriana Kugler, who unexpectedly vacated her position in August. Her term was set to expire at the end of January.

In an unusual move, Miran has said he will take unpaid leave from his White House role while serving at the Fed, rather than formally resigning. He also indicated he might remain longer if no successor is named by the end of his current term.

Some observers argue that the outcome of the upcoming Fed meeting won’t be significantly affected by whether Miran is confirmed in time or whether Cook remains on the board. However, the broader implications of these appointments—and potential removals—raise concerns about political pressure on the central bank.

The structure of the Federal Reserve, with its long 14-year terms for governors and legal protections against removal for political reasons, is intended to shield monetary policy from short-term political influence. Critics worry that recent developments could challenge that independence.

Posting on his social media platform, Trump questioned the Federal Reserve’s approach, suggesting that it may be contributing to challenges in the housing sector. He emphasised that with inflation appearing to moderate, conditions may warrant a more accommodative policy stance.

While inflation has eased from the highs reached during the pandemic, recent economic indicators have shown a mixed picture. Inflation remains above the central bank’s 2% target, and policymakers continue to monitor price trends closely ahead of upcoming decisions.

Trump’s comments come just ahead of Powell’s scheduled speech at an annual gathering of central bankers, a forum where markets often look for signals regarding future monetary policy. The Federal Reserve’s next policy meeting is set for September 16–17.

Market participants and economists currently anticipate a quarter-point rate cut next month, with the potential for another later in the year. This would fall short of the more substantial cuts Trump has advocated. Some of his former economic advisers, including Scott Bessent, have supported a half-point reduction as early as September.

The Federal Reserve has maintained its benchmark interest rate within a range of 4.25% to 4.50% throughout the year. Previous rate cuts occurred in the months surrounding the last presidential election and its aftermath. Since then, the central bank has taken a cautious approach, citing concerns about inflation risks and confidence in the resilience of the labor market.

In July, the Consumer Price Index rose by 0.2%, with the annual rate holding at 2.7%. Core inflation, which excludes food and energy prices, increased 3.1% year-over-year. Based on these figures, economists estimate the core personal consumption expenditures (PCE) index may have risen 0.3% in July, bringing the annual core PCE rate to around 3%. This metric is closely watched by the Federal Reserve in guiding its inflation policy.

While consumer prices remained relatively stable, higher producer and import costs suggest that inflationary pressures may persist in the months ahead. At the same time, signs of a cooling labor market have emerged, though the unemployment rate remains historically low at 4.2%.

In recent remarks, Trump placed particular emphasis on the effect of current monetary policy on housing affordability. Mortgage rates, which are indirectly influenced by the Fed’s actions and more directly tied to long-term Treasury yields, have remained elevated. Limited housing supply and rising home prices continue to put pressure on potential buyers.

Despite a recent slight dip, the average rate for a 30-year fixed mortgage remains high—around 6.7%—compared to levels seen before the Federal Reserve began its rate-hiking cycle in 2022. That rise in mortgage rates has contributed to a more challenging environment for homebuyers and added to broader concerns about access to affordable housing.