September 17, 2025

The U.S. Federal Reserve kicked off a two-day meeting on Tuesday with a blast of political drama! Stephen Miran, a new governor appointed by President Donald Trump, took his seat just as the White House tries to fire another key Fed member, Lisa Cook. This unusual scene has turned what should be a calm discussion about jobs and inflation into a showdown over Trump’s influence on America’s biggest economic watchdog. On Tuesday morning, Trump said he signed the papers for Stephen Miran, who was on leave from being the White House’s top economic adviser, to join the Fed’s Board of Governors. Miran was sworn in that very morning, and the policy meeting started at 10:30 a.m. EDT. Meanwhile, the White House announced it would ask the Supreme Court to allow their attempt to fire Governor Lisa Cook to continue “for cause.” This move came after a federal appeals court blocked Cook’s firing, letting her stay on the job and fully take part in the meeting. Markets are watching closely as the Fed is widely expected to cut interest rates by 0.25% to a range of 4.00%-4.25%. The updated economic forecast and policy statement will drop Wednesday afternoon, followed by a press meet from Fed Chair Jerome Powell. Stephen Miran’s views will be on the spotlight. Will he ride Trump’s wave pushing for super-low interest rates and sunny economic reports or join the other governors in a more balanced stance? Only time will tell. Trump says he supports an independent Fed, but his frustration with Powell’s refusal to cut rates sharply continues. He believes rates should drop to around 1% to help government borrowing and boost the housing market. He’s even pushed Powell to quit over this! But so far, courts have sided with Lisa Cook, who denies any wrongdoing amid Trump’s claim she misled on a mortgage application. The court battle heats up as Judge Bradley Garcia pointed out that Cook wasn’t given a fair chance to defend herself before the firing. However, the court didn’t decide what “cause” means for firing a Fed governor, leaving that crucial question pending. This legal drama, along with Trump’s moves to possibly replace Powell when his term ends in May, means the Fed’s usually quiet halls are now filled with political tension. Though Stephen Miran’s time on the board may be short, his voice could shape how the Fed speaks about the economy and its policies. Trump’s reforms and pressure on the Fed culture could be hinted at through Miran’s actions and statements. Setting aside the political noise, the Fed also faces a shaky job market and inflation still stubbornly above its 2% goal, caused in part by Trump’s tough import tariffs. The main worry for policymakers is the jobs situation, which looks weaker than before. This concern may push Fed officials to finally lower rates this week, ending a long pause since last December. Stay tuned as the Fed fights off political storms while steering America’s economy through choppy waters!

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Tags: Federal reserve, Donald trump, Stephen miran, Lisa cook, Interest rates, Monetary policy,