Federal Appeals Court Halts Firing of Fed Governor, Ensuring Full Panel for Interest Rate Vote in Washington D.C.
The Federal Open Market Committee (FOMC) will have a full 12-member panel during today's interest rate vote, thanks to a federal appeals court decision to block the firing of Fed Governor Dr. Stephen Miran.
On Sept. 15, the Senate confirmed President Donald Trump's nominee, Dr. Stephen Miran, to the Fed board in a 48 – 47 vote, to replace Governor Lael Brainard. However, the White House announced plans to fire Miran just one day later, leading to a legal battle over the president's authority to remove a Fed governor.
The U.S. Court of Appeals for the District of Columbia issued a temporary injunction, halting Miran's removal and ensuring a full panel for today's vote. The court stated that the president must have a valid reason for removing a Fed governor, and that Miran's past academic writings on monetary policy did not constitute a sufficient reason for dismissal.
This decision comes as the FOMC meets to determine interest rate adjustments, with the current target range being 1.75 to 2 percent. The full 12-member panel will now have the opportunity to weigh in on any potential changes.
"This ruling is a victory for the independence of the Federal Reserve and the integrity of our monetary policy decisions," said Fed Chair Jerome Powell in a statement. "We look forward to a robust discussion among all FOMC members during today's vote."
While some experts worry about potential political interference in the Fed's decision-making process, others see this as another example of the Trump administration's disregard for established norms and institutions.
"The president's attempt to remove a Fed governor without cause is a concerning breach of protocol," said former Fed Chair Janet Yellen