Federal Reserve Independence Faces Crucial Test in Senate Hearing

The independence of the Federal Reserve is set to be scrutinized in a Senate Banking Committee hearing on Thursday, with President Trump's economic advisor, Stephen Miran, undergoing a confirmation process for a position on the central bank's governing board.

The hearing follows recent efforts by Trump to assert greater control over the Fed, seen in his controversial attempt to remove Fed Governor Lisa Cook, alleging past misconduct. Cook remains at the Fed as she legally contests her potential dismissal.

As Miran supports Trump's desire to lower interest rates, his potential confirmation by the Republican-majority Senate raises questions about the future autonomy of the Federal Reserve and its impact on the economy.

(With inputs from agencies.)