ISTANBUL

Stephen Miran, who has been nominated by US President Donald Trump to serve on the Federal Reserve's Board of Governors, pledged to protect the central bank's independence and dual mandate of maximizing employment while maintaining price stability.

The text of Miran's opening speech to the US Senate Banking, Housing, and Urban Affairs Committee hearing on Thursday has been made public.

"In my view, the most important job of the central bank is to prevent Depressions and hyperinflations. Independence of monetary policy is a critical element for its success. Given the central bank's outsized role in the economy, it's no surprise that outsiders have opined on its decisions for decades," Miran said in his opening speech ahead of time.

He emphasized that if confirmed, he plans to "dutifully" carry out his role pursuant to the mandates assigned by Congress.

“The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability," he noted.

On the other hand, Miran brought up certain concerns regarding the Fed's supervision of its operations beyond that dual mission, such as the central bank's balance sheet.

“The Fed oversees the most important global financial institutions. It sets varying prices of money for borrowers and lenders, including other central banks. The ultimate composition of the Fed’s balance sheet is an open-ended question,” he said.

A hearing for Miran's confirmation is scheduled for Thursday morning by the Senate Banking Committee. In the last months of a term vacated by Fed Governor Adriana Kugler, the chair of the Council of Economic Advisors and an adviser to Trump will take over. Kugler's tenure will be served by the candidate until January 31, 2026.

The relations between the Fed and the US president have been sour, as Donald Trump has repeatedly demanded that the central bank cut the policy rate, citing moves by European central banks, and warned that delays could stall the US economy.

Despite the political pressure, the Fed has kept rates constant for the last five meetings. The policy rate currently stands in the range of 4.25% to 4.5%, and the next meeting will be held on September 16-17.

Miran has also criticized the Fed in the past, particularly for its aggressive stimulus during the COVID-19 pandemic.