President Donald Trump’s influence over the Federal Reserve is gaining traction, with a key nominee advancing just as a court ruling halts his attempt to oust a sitting governor.
According to CNN, Stephen Miran, Trump’s pick for a Fed governor seat, cleared a procedural Senate committee vote on Wednesday, paving the way for a full Senate confirmation likely in time for next week’s rate-setting meeting. Meanwhile, a federal judge blocked Trump’s bid to fire Fed Governor Lisa Cook on Tuesday night, a decision the administration is now appealing.
This dual development underscores Trump’s relentless push to reshape the historically independent Fed since the start of his second term. His economic agenda, from historic tariffs to direct pressure on central bankers, has rattled markets and left consumers uneasy about inflation and job prospects.
Trump’s attempt to remove Lisa Cook hit a wall when Judge Jia Cobb, a Biden appointee, issued a preliminary injunction, stating the president failed to show any evidence of misconduct or harm to the public interest. The administration’s appeal, following Trump’s unverified claims of mortgage fraud against Cook, signals a dogged fight to control the Fed’s voting lineup.
At the same time, Stephen Miran’s nomination moved forward with Republican support in the Senate Banking Committee, despite Democratic objections. Critics like Sen. Mark Warner of Virginia warned that stacking the Fed with loyalists risks “even more instability for consumers,” a concern that feels valid when trust in institutions is already shaky.
Miran, currently chair of the Council of Economic Advisers, dodged committing to resign if his temporary term ends in January without a permanent successor. His stance, coupled with Sen. Elizabeth Warren’s jab that his proximity to the White House is “a bad joke,” fuels suspicion that Trump’s influence could linger at the Fed longer than promised.
Trump’s broader economic vision, anchored by sweeping global tariffs, is also facing legal scrutiny as the Supreme Court agreed on Tuesday to hear arguments over their legality. A lower court ruling on August 29 deemed most of these emergency-powered levies unlawful, and now the president seeks a reversal from a conservative-leaning high court.
While the tariffs remain in limbo, economic data shows they haven’t yet triggered runaway inflation, with wholesale prices cooling in August per the latest Producer Price Index. Still, the uncertainty has throttled businesses, especially in tariff-sensitive sectors like construction and manufacturing, which shed 10,000 and 31,000 jobs respectively over recent months.
Surveys from the Institute for Supply Management reveal frustration among manufacturers, with one electronics maker lamenting that “tariffs continue to wreak havoc on planning” as unexpected duty hikes disrupt operations. This kind of chaos undercuts the stability Trump claims to champion, exposing the real-world fallout of erratic trade policies.
Miran’s confirmation vote in the full Senate is the next battleground, with a Republican majority likely ensuring his ascent despite Democratic pushback. His potential presence at the Fed’s September 16-17 meeting could tilt policy discussions in Trump’s favor, a win for those who see the central bank as too detached from elected leadership.
Yet Miran’s refusal to clarify his post-term plans raises red flags about accountability. If he’s merely a placeholder, as Trump suggested last month, why the ambiguity about stepping aside when a permanent successor is named?
Democrats argue this nomination is a blatant politicization of the Fed, a charge that resonates when Miran’s written responses and hearing comments sidestep direct assurances of independence. The fear is a central bank less focused on data and more on directives from down the street at the White House.
Trump’s economic overhaul is a high-stakes gamble, yielding both courtroom setbacks and legislative wins like his tax and spending bill through a Republican Congress. But with consumer confidence wobbling and job growth sluggish over the summer, the jury is out on whether his sledgehammer approach will deliver prosperity or pain.
The Fed saga, paired with the Supreme Court’s expedited review of his tariffs, shows a president determined to leave his mark, even if it means breaking china along the way.
For a nation craving certainty, these battles over policy and power offer little comfort, only the promise of more turbulence ahead.
