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lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
Trump gets a Fed win one day after a big setback | |
By Bryan Mena, CNN | |
Updated: | |
1:17 PM EDT, Wed September 10, 2025 | |
Source: CNN | |
President Donald Trump’s nominee to the Federal Reserve’s powerful | |
board may soon work alongside the same central banker the president | |
tried to fire weeks ago, in what would be a stunning milestone in | |
Trump’s ongoing bid to bend the historically independent Fed to his | |
will. | |
In a Tuesday night ruling, a federal judge of Fed Governor Lisa Cook. | |
The Trump administration said on Wednesday it was appealing. | |
On Wednesday, Stephen Miran’s nomination to become a Fed governor got | |
the green light in a procedural Senate committee vote Wednesday. Soon, | |
all 50 senators will vote on whether to confirm him — a hurdle Miran | |
is expected to clear in time to join the Fed for its rate-setting | |
meeting next week. | |
Trump’s mark on the Fed — and also the US economy — is expected | |
to become even clearer in the months, or even weeks, ahead. Since the | |
beginning of his second term, Trump has taken a sledgehammer to the | |
status quo of American economic policy by enacting historic tariffs and | |
carrying out an intense pressure campaign against the Fed. | |
As a result, consumers have grown skittish about the economy’s | |
future, wary of higher inflation and rising unemployment. For US | |
businesses, the nagging uncertainty has translated into , calling into | |
question the true health of the world’s largest economy. | |
But many of Trump’s significant policy changes have been challenged | |
in court, including his tariffs; and so far, it’s been a mixed bag of | |
wins and losses for the president. The Republican-controlled Congress | |
has delivered mostly wins for Trump, including the passage of his | |
signature tax and spending bill. | |
The Fed’s future | |
At the moment, Cook retains her ability to vote on the Fed’s policy | |
decisions, with a meeting coming up on September 16-17. | |
Judge Jia Cobb, an appointee of former President Joe Biden, granted | |
Cook’s request to stop Trump’s attempted firing of the Fed governor | |
through a preliminary injunction, writing that the president “has not | |
identified anything related to Cook’s conduct or job performance as a | |
Board member that would indicate that she is harming the Board or the | |
public interest by executing her duties unfaithfully or | |
ineffectively.” | |
The Trump administration is expected to appeal the judge’s decision, | |
which keeps Cook in her role as the litigation proceeds. Trump last | |
month said he fired Cook, citing unproven allegations of mortgage | |
fraud, which are now being investigated by the Justice Department. | |
Meanwhile, the Senate Banking Committee on Wednesday voted to move | |
forward Miran’s nomination to fill a seat vacated by former Fed | |
governor Adriana Kugler, who resigned last month without providing a | |
reason. Miran’s nomination has sparked opposition from Democrats, but | |
not Republicans, who control the Senate. That means Miran has a solid | |
chance at being confirmed, despite Democratic opposition. | |
“By trying to stack the Fed with political loyalists, Trump is laying | |
the groundwork for even more instability for consumers,” Sen. Mark | |
Warner of Virginia said in a statement Wednesday. “I strongly oppose | |
the nomination of Stephen Miran, and I urge my colleagues to reject | |
this latest effort to politicize the Federal Reserve.” | |
In written responses to the banking committee, released Tuesday, Miran | |
said that, if confirmed, he won’t commit to resigning when the | |
governor term ends in January if a permanent successor hasn’t been | |
named. When Trump nominated Miran last month, he said it would be a | |
temporary appointment to finish out Kugler’s unexpired term. Miran, | |
currently the chair of the Council of Economic Advisers, reiterated | |
that plan last week during his confirmation hearing. | |
On Tuesday, he also reiterated that he would take a leave of absence | |
from his current role if his Fed term is only temporary. Sen. Elizabeth | |
Warren of Massachusetts on Wednesday called that “a bad joke.” | |
“He will be sitting down the street from the White House, and he has | |
refused to disclose any communications he has with the President or the | |
White House while he’s at the Fed,” she said during the banking | |
committee’s executive session. | |
The direction of the US economy | |
The courts are also determining the fate of the centerpiece of | |
Trump’s economic agenda. | |
On Tuesday, the Supreme Court over the legality of Trump’s sweeping | |
global tariffs. A lower court on August 29 ruled that the bulk of those | |
levies enabled by presidential emergency powers were unlawful. Now | |
Trump is requesting the nation’s highest court, which has a | |
conservative majority, to overturn that ruling. | |
A decision would normally be expected by the end of June. But in this | |
case, the court said it would expedite its review. | |
So far, Trump’s tariffs — many of which are in limbo — haven’t | |
translated into surging inflation, economic data shows. US inflation | |
cooled off at the wholesale level in August, released Wednesday. | |
But the levies have squeezed businesses, especially those in | |
tariff-sensitive industries. | |
The construction and manufacturing industries have shed jobs throughout | |
the year, according to Labor Department data, down 10,000 and 31,000 | |
jobs compared to three months ago, respectively. Business surveys by | |
the Institute for Supply Management show that manufacturers and service | |
providers remain frustrated with Trump’s seesawing trade war, | |
continuing to have a difficult time planning ahead. | |
“Tariffs continue to wreak havoc on planning/scheduling | |
activities,” an electronics manufacturer told ISM for its August | |
survey. “New product development costs continue to increase as | |
unexpected tariff increases are announced — for example, 50% duties | |
on imports from India, and increases to all countries up from original | |
10%” | |
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