Stephen Myron, nominated as a governor of the U.S. Federal Reserve (Fed) and chairman of the White House Council of Economic Advisers (CEA), speaks at a confirmation hearing held in the Senate in Washington D.C. on the 4th (local time). Yonhap News. 

As the Trump administration's attempts to gain control over the Federal Reserve (Fed) stir controversy in the U.S., an associate of President Trump, nominated as a Fed governor, has stated his intention to retain his White House position during his tenure as governor.

Stephen Myron, nominated as a Fed governor, stated at a Senate confirmation hearing on the 4th (local time) that he does not plan to resign from his role in the Trump administration if confirmed as a Fed governor, according to U.S. media outlets including The Washington Post (WP).

Myron, currently serving as the White House Council of Economic Advisers (CEA) chairman, was nominated for the vacant governor position on the 7th of last month following the sudden resignation of Fed Governor Adriana Kugler.

Myron will serve as a Fed governor until January 31st of next year, completing Kugler's remaining term.

Myron explained that because he is only expected to fill a short remaining term, he plans to take unpaid leave instead of resigning from his CEA chairmanship, a decision he made based on legal advice.

"The term for the position I have been appointed to is four and a half months. If I were appointed and confirmed for a longer term, not just a few months, I would fully resign," Myron stated.

However, the WP assessed this as an unusual move that is likely to raise concerns about the independence of the Fed, the central bank of the U.S., by allowing him to hold an administrative position while serving as a Fed governor.

No administration official has concurrently held a position as a Fed governor in the past 90 years, and Myron could continue to serve as governor until the Senate confirms his successor, even after completing Governor Kugler's remaining term, the WP explained.

Furthermore, Myron has previously criticized the revolving door phenomenon between the Fed and the administration, arguing that individuals should be prohibited from working in the administration for four years after completing their tenure as a Fed governor.

The New York Times (NYT) also reported that concerns about Myron's commitment to preserving the Fed's long-standing independence from political interference have grown due to his statements at the hearing.

The NYT projected that Myron, who has actively promoted President Trump's economic policies, would attempt to achieve what President Trump desires within the Fed.

The U.S. Federal Reserve building. Reuters/Yonhap News. 

This hearing was quickly scheduled to allow Myron to attend the Federal Open Market Committee (FOMC) meeting scheduled for the 16th-17th.

The market anticipates that the Fed will lower the benchmark interest rate by 0.25 percentage points at this FOMC meeting.

President Trump has consistently argued that the Fed should lower interest rates and has repeatedly criticized Fed Chairman Jerome Powell, urging his resignation, for not complying with these demands.

President Trump is seeking to fill the seven-member Board of Governors with his own appointees, aiming to transform the Fed into an organization that complies with his directives.

In this context, he recently notified Fed Governor Lisa Cook of her termination, citing allegations of mortgage fraud.

In response, Democrats and some in the financial market have pointed out that the Fed's independence, which needs to be free from political interference, is under threat.

Democratic senators raised these concerns during the hearing as well.

"Your independence has already been severely undermined by your own statements," Senator Jack Reed criticized, while Senator Andy Kim pointed out, "You can continue to act in ways that align with the President's political interests because you know he could be your boss again in the White House in the future."

Senator Elizabeth Warren added, "Every claim he makes and every vote he casts will be tainted by suspicion that he is not an honest broker but a puppet for Donald Trump."

However, Myron, considered a close associate of President Trump, maintained his stance that he can maintain independence as a Fed governor.

"My opinions and decisions will be based on my analysis of the macroeconomy and my judgment of what is best for the long-term management of the macroeconomy," he said. "The FOMC is an independent group tasked with an enormous responsibility, and I intend to maintain that independence and serve the American people to the best of my ability."

Myron is expected to be confirmed as no Republican senators have voiced opposition.

Yonhap News