Trump nominates Miran to Fed board as Cook ouster creates uncertainty

President Donald Trump’s effort to reshape the Federal Reserve intensified this week as he nominated White House economist Stephen Miran to the Fed’s board and moved to remove Governor Lisa Cook, who has sued to block her ouster. A judge heard arguments in Cook’s case on Friday but issued no ruling, leaving the central bank’s leadership in flux ahead of the Federal Open Market Committee’s Sept. 16 and 17 meeting where policymakers could consider cutting interest rates.

Cook, a Senate confirmed Biden appointee, has refused to resign after the White House cited allegations of mortgage fraud, and she filed suit arguing the firing was unlawful. The Justice Department has opened an inquiry related to the matter, and in court filings the Fed urged a prompt resolution to remove the cloud of uncertainty over who may be permitted to serve at the Sept. meeting.

Miran, who leads the White House Council of Economic Advisers, told senators at his confirmation hearing that he would “act independently as the Federal Reserve always does.” At the same time he said, on legal advice, he would take an unpaid leave from his White House job rather than resign if confirmed to fill an unexpired term....