Senate Banking Chair backs Trump’s Fed pick, sees 50 bps cut possible

FIRST ON FOX: Senate Banking Committee Chairman Tim Scott, R-SC, told Fox News Digital that a 50 basis point rate cut is possible this week and touted the arrival of President Donald Trump’s newly confirmed member of the Federal Reserve Board of Governors.

Stephen Miran, an economic adviser to President Trump and former Chair of the Council of Economic Advisers, was confirmed by the U.S. Senate in his appointment to fill a vacancy on the Federal Reserve Board of Governors late Monday night.

“I talked to [Miran] about two really important things,” Scott said on a call with Fox News Digital. “The independence of the Fed, [and] sharing the President’s vision for what moves our economy forward.”

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“The president has done such a good job of moving our country forward,” Scott added. “What else does he need? One big thing. I think a lower interest rate.”

Miran earned his bachelors degree in economics from Boston University, and subsequently received his PhD from Harvard in 2010.

Senator Tim Scott, the top banking official in the U.S. Senate, explained to Fox News Digital that he is confident in Miran’s ability to ensure economic growth as the Fed meets to discuss trends in the economy and a possible rate change in Washington D.C. this week.

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“I wanted to make sure that Stephen and I were on the same page about his commitment to looking at the American economy and understanding underlying movers in that economy,” Scott told Fox.

“Because of his experience, because of his leadership and his clear commitment, I think we found a guy who’s ready for the job because of who he is, as well as what he knows,” Scott explained.

President Trump has pressed Fed Chair Jerome Powell for lower interest rates during his campaign in 2024 and throughout his presidency. The Fed has not lowered rates since Trump took office in his second term.

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“Just out: No Inflation!!! ‘Too Late’ [Jerome Powell] must lower the RATE, BIG, right now, Trump posted to Truth Social last week. “Powell is a total disaster, who doesn’t have a clue!!!”

As for a potential rate cut, the Federal Open Market Committee (FOMC) is expected to make a 25 basis point cut in the federal funds rate this week, but when asked if a 50 basis point cut was possible, Senate Banking Chairman Scott told Fox, “I think the answer is yes.”

The CME FedWatch, which uses probability calculations to determine how financial markets are predicting a rate cut, shows a 96% chance of a 25 basis point cut and just a 4% chance of a 50 basis point cut.