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Democrats require that Donald Trump’s candidate to be the highest American economic counselor dedicated to the independence of the federal reserves, as Congress carefully studies the efforts of the President to gain more control over the central Bank.
Elizabeth Warren, a top Democrat on the Senate Banking Committee, sent letter White house asking Stephen Miran, Trump’s candidate to chair the Council of Economic Advisers (CEA), whether he “commit to support of the Fed independence from political influence.”
A letter from February 21, and seen in the Financial Times, comes in front of Miran’s hearing for a certificate before the Senate Committee under the control of the Republicans on Thursday.
Trump He used the first month of his second term to expand the reach of his executive powers, including the control of the White House control over independent agencies and regulators.
Last week Trump signed an executive order for renovation Independent financial guarddirecting them to “advise” with a white house about “their priorities and strategic plans”. The financial role of the Fed financial sector was targeted, although his functions of monetary policy were exempt.
IN Cea is a group of three people who advises the president on economic policy, and his president can be an important impact on economic issues.
Miran, who served as the Advisor for the Ministry of Finance Politics during Trump’s first term, is open critic Fed chair Jay Powell. He also urged that the extent of the Central Bank’s independence be tears, claiming that it does not actually act autonomous and that it is inherent in tension with the US constitutional system.
In a paper Last year, advocating for the Fed reform, Miran wrote that “pure independence is incompatible with a democratic system,” and its management structure “has led to significant mistakes of monetary policy.” This “followed a much more expansive monetary and regulatory agenda, which is more in accordance with the explicitly political institution,” he claimed.
In October 2020, Powell hit Powell in October 2020 to call for more aggressive fiscal and monetary stimuli, about a month before the election of that year, to help economic recovery in the middle of the Coid-19 pandemia.
“Powell was in the wrong political and economic when he called on Congress to” become a big “on a fiscal impetus in October 2020, on the eve of the presidential election,” he wrote on X in September.
One of his proposed reforms was to make members of the Fed Committee and the leaders of a branch suspected by the President at will.
In his letter to Mirina, Warren asked: “Do you believe that the president can shoot at will a [Fed] The Committee Officer? “She also questioned him if” Support[s] Proposals for the removal of the Fed responsibility to promote full employment ”from a double term of the bank.
The Fed faces the strongest challenge of its independence to set interest rates since the 1980s, and Trump called on Powell to reduce the borrowing costs. The Fed chair has defended the authority of the bank Through American monetary policy, he vowed to remain above political conflict.
The 27 -page Warren letter asked Mirana to provide for its views on various areas of basic economic policy, including Trump’s tax and trade programs, economic forecasts and fiscal policies, price reduction, financial regulation and economic influence of immigration.
The senator also expressed concern about Miran’s potential conflicts of interest. He is a higher strategist at Hudson Bay Capital, a large hedge fund.
The White House and Miran did not respond to the commenting requests.
Additional James Politi reporting in Washington
