Stephen Miran Fed nomination passes Senate Banking Committee

Key insight: Stephen Miran passes a key procedural step by having his nominated clear the Senate Banking Committee.

Expert quote: "We requested in writing that dual opinion, and he refused to give it to us, so we are still completely uncertain as to his legal status," Sen. Jack Reed, D-R.I., said.

Forward look: Senate Republicans are pushing for Miran's nomination to clear the full Senate before next week's Federal Open Market Committee meeting.

WASHINGTON ? Stephen Miran, President Donald Trump's pick to fill a four-month vacancy on the Federal Reserve board, passed a key hurdle in confirmation by having his nomination pass the Senate Banking Committee in a party-line vote.

The committee voted 13-11 to favorably recommend Miran's nomination to the full Senate. The vote is a key step in getting Miran confirmed in time to participate in the next Federal Reserve Open Markets Committee next week.

The vote comes amid concerns about Miran's ability to maintain the independence of the Fed's monetary policy. Miran indicated during his nomination hearing with the committee that he would continue to hear Trump's perspective on interest rates, and that he wouldn't formally resign from his position on Trump's key economic council and would instead take an unpaid leave of absence.

Those worries about Fed independence drew uniform nay votes from Democrats, even those who have voted alongside Republicans on banking issues and might have otherwise supported the choice of Miran.

"The Federal Reserve was designed to make decisions free from political interference, guided by data and the long-term stability of our economy, not the political agenda of any one president," said Sen. Mark Warner, D-Va. "Donald Trump has made clear he wants to tear down that independence, just as he has with so many of the institutions that have kept our democracy and our economy strong."

Sen. Jack Reed, D-R.I., said that Miran refused to provide a legal opinion saying that he could stay on the Council of Economic Advisers while taking an unpaid leave of absence while he serves on the Fed board.

"We requested in writing that dual opinion, and he refused to give it to us, so we are still completely uncertain as to his legal status," Reed said.

Committee ranking member Elizabeth Warren, D-Mass., said that Miran's term is likely to be much longer than the short period to which he's nominated. Fed board members don't have to leave once their term expires, and the term to which Miran is being appointed expires in January. Board members serving expired terms continue to sit on the board until a successor is confirmed.

Miran didn't commit to resign from the CEA should his term extend past January.

"If I am confirmed and a successor has not been appointed to my seat on the Fed upon the expiration of the term in January 2026, I will reevaluate my decision to take an unpaid leave of absence from CEA at that time," he said in a response to Democrats on the committee.

Miran's position on the CEA and on the Fed board contradicts positions he's previously taken. In a Manhattan Institute paper last year he said that Fed board members should be barred from serving in the executive branch once their Fed term comes to a close.