The US Senate Banking Committee voted 13-11 today to approve the nomination of Donald Trump's advisor Stephen Milan to serve on the Federal Reserve Board for a short term.
The decision was made along party lines, with Republicans reportedly aiming to quickly pass Milan's nomination through the Senate ahead of next week's interest rate decision meeting.
Milan's candidacy will be put to a vote in the Senate's plenary session on Monday and is expected to be approved, according to sources familiar with the matter.
Markets are pricing in the expectation that the Fed will cut interest rates for the first time since December at its meeting next week. This step is believed to be a response to the recent slowdown in employment growth.
Ed Yardeni, president and chief investment strategist at Yardeni Research, warned that looser monetary policy could trigger a destabilizing “meltdown” in U.S. stocks without addressing America’s labor supply shortage, which has been strained by President Trump’s immigration crackdown and an aging population.
*This is not investment advice.
