Senate Advances Nomination of Economist Stephen Milan
The Senate has voted to end discussions surrounding the nomination of economist Stephen Milan from the White House. The vote concluded with a tally of 50 to 44, moving Milan’s nomination forward to fill a vacancy left by Federal Reserve Governor Adriana Kugler, who resigned in August before her term concluded in January 2026.
In a notable turn, Republican Senator Lisa Murkowski from Alaska sided with all Democrats, casting the only GOP vote against halting the debate on Milan’s nomination. Milan, if confirmed, would hold a significant role within the Federal Open Market Committee (FOMC), which sets interest rates in the U.S.
There are expectations that the FOMC might lower interest rates on a quarterly basis due to concerns about a weakening labor market, marking its first decrease since December of last year. Former President Trump has been vocal about his desire for aggressive rate cuts, claiming it could positively impact the housing market through a post on social media. Critics, including some in the GOP, have directed their frustrations at Fed Chairman Jerome Powell for not making those cuts and have even called for his resignation.
Milan mentioned that he would resign from his current role on the White House Economic Advisors Council if he were nominated by Trump for a longer term. His nomination comes amidst pressures from the Trump administration to remove Lisa Cook from the Federal Reserve board, with a federal housing finance agency overseeing the matter.
Cook has been under scrutiny, as the Department of Justice continues to investigate her for alleged mortgage fraud, although she has not yet faced any charges. A Biden-appointed judge, Jia Cobb, recently blocked the Trump administration’s attempt to oust Cook, with the DOJ lawyers appealing a decision. A ruling from the federal court of appeals is anticipated soon regarding Cook’s status on the board.
At this point, it’s uncertain whether Cook will participate in the upcoming two-day Federal Policy Committee meeting. The Senate is expected to finalize Milan’s confirmation with the Federal Reserve later this evening.
