US Fed meeting begins: Trump aide Stephen Miran sworn in as governor, Jerome Powell under pressure as rate cut expected

The US Federal Reserve opened a key interest rate meeting on Tuesday, just hours after Donald Trump’s close aide Stephen Miran was sworn in as a governor of the central bank, while another top official, Lisa Cook, is fighting the president’s attempt to oust her.Miran, who has been a senior adviser to Trump, took the oath of office on Tuesday, the Fed said in a statement, as its rate-setting Federal Open Market Committee (FOMC) began a two-day policy gathering AFP reported. His arrival followed a narrow Senate vote on Monday night confirming him as one of the FOMC’s 12 voting members.Markets widely expect the Fed to announce its first interest rate cut of 2025 when the meeting concludes on Wednesday, as policymakers seek to shore up a weakening jobs market. But political pressure on the independent central bank has intensified, with Trump repeatedly urging Chair Jerome Powell to cut rates more aggressively.Miran’s appointment gives him a single vote on the FOMC, and it is unclear whether he will align with Trump’s calls for steeper reductions. On Tuesday, Trump told reporters that the Fed should “listen to smart people like me.”Before joining the Fed, Miran was serving as chairman of the White House Council of Economic Advisers. His decision to take a leave of absence from that role, rather than resign, drew criticism from Democratic lawmakers, particularly as his Fed term lasts just over four months. He is filling the unexpired term of Adriana Kugler, who stepped down before her stint was due to end in late January.The meeting is also overshadowed by Trump’s attempt to remove Cook, a Fed governor appointed by former president Joe Biden, over allegations of mortgage fraud. Cook has not been charged, and the alleged incidents predate her appointment. A federal appeals court ruled late Monday that she could remain in place while her legal challenge proceeds, but the Trump administration plans to take the case to the Supreme Court.White House spokesman Kush Desai told AFP that the president “lawfully removed Lisa Cook for cause,” which he said could mean malfeasance or dereliction of duty. He added: “The administration will appeal this decision and looks forward to ultimate victory on the issue.”The Fed has held its benchmark lending rate between 4.25 percent and 4.50 percent since December, monitoring the impact of Trump’s tariffs on the economy. Markets are betting on a 25-basis point cut this week, while looking for signals on the pace and scale of reductions in the months ahead.