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Home Local News Fed Holds Meeting with Trump’s New Appointee and Another Governor He Plans to Replace

Fed Holds Meeting with Trump’s New Appointee and Another Governor He Plans to Replace

Fed convenes meeting with a governor newly appointed by Trump and another he wants to oust
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Published on 16 September 2025
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FILE – Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)
Stephen Miran testifies during a Senate Banking Committee hearing on his nomination to be a member of the Board of Governors of the Federal Reserve System, on Capitol Hill Thursday, Sept. 4, 2025, in Washington. (AP Photo/Mariam Zuhaib)

Copyright 2022 The Associated Press. All rights reserved.

FILE – Board of Governors of the Federal Reserve member Lisa Cook, speaks during a conversations with leaders from organizations that include nonprofits, small businesses, manufacturing, supply chain management, the hospitality industry, and the housing and education sectors at the Federal Reserve building, Sept. 23, 2022, in Washington. (AP Photo/Manuel Balce Ceneta, File)

WASHINGTON – After a late-night vote and last-minute ruling, the Federal Reserve began a key meeting on interest rate policy Tuesday with both a new Trump administration appointee and an official the White House has targeted for removal.

Stephen Miran, a top White House economist who was confirmed by the Senate with unusual speed late Monday, was sworn in Tuesday as a member of the Fed’s board of governors. He will vote on the Fed’s interest rate decision on Wednesday, when the central bank is expected to reduce its key rate by a quarter-point. Miran may dissent in favor of a larger cut.

Also attending the meeting is Fed governor Lisa Cook, whom the Trump administration has sought to fire in an unprecedented attempt to reshape the Fed, which historically is considered independent of day-to-day politics. An appeals court late Monday upheld an earlier ruling that the firing violated Cook’s due process rights. A lower court had earlier also ruled that President Donald Trump did not provide sufficient “cause” to remove Cook.

With both officials in place, the Fed’s two-day meeting could be unusually contentious for an institution that typically prefers to operate by consensus. It’s possible that as many as three of the seven governors could dissent from a decision to reduce rates by just a quarter-point in favor of a half-point. That would be the first time since 1988 that three governors have dissented. Economists also say that one of the five regional Fed bank presidents who also vote on rates could dissent in favor of keeping rates unchanged.

On Tuesday, the White House said it would appeal Cook’s case to the Supreme Court, though did not specify when.

“The President lawfully removed Lisa Cook for cause,” White House spokesman Kush Desai said. “The Administration will appeal this decision and looks forward to ultimate victory on the issue.”

Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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