Federal committee to conduct confirmation proceedings for Trump's chosen nominee for the Federal Reserve on Thursday

The Senate committee is holding a hearing this morning to assess President Trump's nominee for the Federal Reserve's governing board, Stephen Miran, a White House economic adviser. This nomination comes amidst a contentious battle over the central bank's independence.

Trump's decision to nominate Miran follows his attempt to oust Fed governor Lisa Cook, a move that is currently being challenged in court. Trump and his allies have accused Cook of mortgage fraud, but Cook denies these allegations, claiming they are merely a pretext to push her off the board.

If successful, Trump will have four out of seven Fed governors as his appointees, posing a serious threat to the central bank's independence. This potential shake-up at the Federal Reserve has raised concerns, as most advanced economies have decided it's prudent to insulate their central banks from meddling by politicians.

Fed Chairman Jerome Powell has emphasised the importance of insulating the central bank from political pressure, stating that it leads to better long-term decision-making. Powell's own term as Fed chairman runs out next May, and at that time, Trump will have the opportunity to name a new chairman.

Miran, in his paper last year, argued that the president should have more control over the Fed's board of governors. However, he also suggested a ban on people moving from the White House to the Fed, a suggestion that is not currently in effect.

Meanwhile, Lisa Cook has filed a lawsuit to prevent the president from firing her from the Fed board. The Democratic senator who will oversee Trump's Federal Reserve nominee and is a member of the relevant Senate committee is not explicitly named in the provided search results.

Trump has expressed a desire for lower borrowing costs and more control over decision-making at the Federal Reserve. He believes that having a majority of his appointees on the Fed's board will lead to lower interest rates for housing. Trump has stated that people are paying too high an interest rate.

The fight to prevent President Trump from firing Fed governor Lisa Cook is being waged in the courts. If successful, Cook could remain on the board as a Fed governor through 2028, but Powell has not yet said whether he plans to stick around that long.

The Senate has a chance to weigh in on the matter of Fed independence. Their decision could have significant implications for the future of the Federal Reserve and the US economy.