Trump pick Stephen Miran lone dissenter in Fed’s 11–1 rate cut vote

Newly sworn-in governor wanted deeper half-point cut

The Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, but the decision wasn’t unanimous. The 11–1 vote saw Stephen Miran, President Donald Trump’s newly confirmed governor, break ranks and call for a larger half-point cut.

Miran’s dissent didn’t come as a surprise. His nomination was seen as part of Trump’s campaign to reshape the Fed into a more aggressive cutter. Until Monday, Miran was still serving as Chair of the White House Council of Economic Advisers, a role he has taken an unpaid leave from rather than resigning outright. Critics, as cited by CNBC, say that leaves his independence in doubt.

Bowman and Waller fall in line

Wednesday’s outcome marked a shift from July, when Governors Michelle Bowman and Christopher Waller, both Trump appointees, had dissented in favour of a 25-basis-point reduction. This time, with Powell leading the push for the quarter-point move, Bowman and Waller voted with the majority.

Politics in the room

Miran’s arrival at the Fed followed the sudden resignation of Adriana Kugler, whose term was due to run until January 2026. Trump tapped Miran to fill her seat, fast-tracking him through Senate confirmation just as the September FOMC meeting loomed.

Meanwhile, Trump’s attempt to fire Governor Lisa Cook over unproven mortgage fraud allegations was blocked by a federal appeals court earlier this week. The White House has vowed to take the case to the Supreme Court.

Independence questions resurface

Democrats and Fed-watchers alike have raised alarms about Miran’s dual role, warning that Trump is eroding the central bank’s independence. While Miran has pledged to form his own views about the economy, his push for a half-point cut underscored his alignment with the White House’s push for looser policy.

In the Fed’s dot plot of officials’ projections, one forecast stood far below the others, almost certainly Miran’s, pointing to over a full percentage point of additional cuts in 2025.