This year in Washington has been pretty wild. But Monday? It was something else. Politics, money, and power all collided.
The Senate narrowly confirmed Stephen Miran, an economist favored by Donald Trump, to the Federal Reserve Board. The vote was 48–47. Close! Republicans were happy, saying Miran would bring discipline to the Fed. Democrats weren’t, warning he could hurt the Fed’s independence. Around the same time, a court blocked Trump’s attempt to remove Lisa Cook, a Biden appointee, from the Fed. She gets to stay. That’s a loss for Trump and a win for Cook. It also shows that there are still some limits. In one day, the Fed which is supposed to be calm and steady became another place where politics is really loud.
Who Is Stephen Miran?
Miran isn’t well-known outside economics. But he’s been close to Trump for years. When Trump was in office before, Miran worked at the Treasury Department, pushing ideas that Trump liked: less stimulus, less spending, and doubt about policies that could cause inflation. That made his nomination controversial. The Fed should be independent, making decisions based on facts, not politics. Democrats grilled Miran during his hearings. Could he separate his ideas from Trump’s? One senator warned, We can’t let the Fed become a political tool. Republicans disagreed, saying he’s smart and exactly what the Fed needs. They pushed him through.
Lisa Cook Stays Put
Lisa Cook’s situation was different. President Biden appointed her in 2022. She was the first Black woman on the Board. She had done a lot of research on innovation, growth, and inequality. Many saw her as a new voice at the Fed. But that also made her a target. Trump’s people argued her appointment wasn’t valid and tried to remove her. The court said no. Cook’s appointment was legal. She stays.
For Cook, it wasn’t just about her job. It was a sign that there are limits to political power, even in Washington. For Trump, it was a rare loss in his effort to shape the Fed.
Why This Matters
These names might seem unimportant but their work has an impact. The Fed isn’t just a group of economists talking about complicated stuff. It sets interest rates and manages inflation. Its decisions affect everyone. When the Fed raises rates, your mortgage changes and credit card bills increase. Companies borrow less, and jobs can slow down. When it lowers them, the economy can speed up, but inflation can too.
Right now, inflation is down from last year, but it’s still a problem. Job growth has slowed, and markets are shaky. What the Fed does at its next meeting could change the economic outlook. Now that Miran is confirmed and Cook is still there, the Board is more divided. Miran is likely to want tighter money to fight inflation. Cook has focused on helping everyone, saying the Fed must protect people, especially those who are most affected by economic problems. Their disagreement is about how fast the Fed should cool the economy.
The Bigger Picture
Politics at the Fed isn’t new. Richard Nixon pressured Fed Chair Arthur Burns in the 1970s, and Trump argued with Jerome Powell over rates. But now it feels more obvious. The Senate fight, the lawsuits, and the news stories show how political the Fed has become. For Trump, Miran’s confirmation was a win. For Cook, the court’s decision was a victory. For everyone else, it means the group that guides the economy is more divided than ever.
What’s Next?
Monday’s events weren’t just about filling a seat. It was a sign that the Fed is now in the spotlight, caught between being independent and being loyal to politics. The stakes are high. The next meeting could decide whether rates stay high, fall, or remain where they are. Those decisions will affect mortgages, car loans, businesses, and paychecks. Will the Fed act based on data, or will politics get in the way?
What happened on Monday wasn’t just a win for one side. It was a reminder that the fight over the economy is happening in the halls of power. And for people trying to make a living, that fight matters more than any vote.
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