Federal Reserve faces pressure as Trump pushes for rate cuts, new governor joins board

 The Federal Reserve is meeting today at a critical moment for the central bank, as political pressure and economic uncertainty collide.

(CNN)-  The Federal Reserve is meeting today at a critical moment for the central bank, as political pressure and economic uncertainty collide.

The session follows the Senate’s confirmation of Stephen Miran as a new governor. Miran, who is replacing a member who resigned last month, will also keep his White House position while taking unpaid leave. His arrival reshapes the Fed’s leadership at a time when President Donald Trump is urging aggressive action to slash interest rates.

Former National Economic Council official Jason Furman noted the significance of Senate remarks during the confirmation, saying, “The senators at least say the right thing about independence, and I think that counts for something.”

Meanwhile,  Lisa Cook remains on the board despite Trump’s attempt to remove her. An appeals court ruled in her favor this week, underscoring questions about the extent of presidential power over the central bank. CNN’s Vanessa Yurkevich observed, “The key takeaway here is what exactly is cause, and what kind of power does that ultimately give to the President of the United States when it comes to the Federal Reserve?”

Investors widely expect the Fed to announce a modest quarter-point cut tomorrow. Economists, however, are voicing concern that tariffs are fueling both inflation and slowing growth — a mix known as stagflation.

“They’re making a bet that the recent reacceleration in inflation is being driven by tariffs and that they can look through it,” said Martha Gimbel of Yale’s Budget Lab. “That’s a big bet.”

University of Michigan economist Justin Wolfer highlighted the dilemma: “Tariffs cause the economy to shrink. That’s the sort of thing you’d normally cut rates for. Tariffs cause inflation to rise. That’s the sort of thing you’d normally raise rates for.”