By Howard Schneider And Ann Saphir,Irishexaminer.com

Copyright irishexaminer

Mr Trump said on Tuesday he had signed documents allowing Stephen Miran, who is on leave as head of the White House’s Council of Economic Advisers, to join the US central bank’s board of governors. Mr Miran was sworn into his Fed position later on Tuesday morning.

A White House spokesman also said the administration would ask the US Supreme Court to allow the president’s effort to fire Fed Governor Lisa Cook “for cause” to proceed.

A federal appeals court on Monday blocked Ms Cook’s firing, paving the way for the Biden appointee to participate fully in the policy meeting this week. The Fed is widely expected to cut its benchmark overnight interest rate by a quarter of a percentage point to the 4.00%-4.25% range.

The timeline of any US Supreme Court appeal and decision is unclear. The Fed will release a policy statement and updated quarterly economic projections on Wednesday. Fed chair Jerome Powell will hold a press conference afterwards.

In a 2-1 ruling on Monday, a federal appeals court in Washington said Ms Cook could remain in her job while litigation over Mr Trump’s effort to fire her proceeds, a decision that absent a last-minute intervention by the US Supreme Court means she will participate fully at the meeting this week.

White House spokesperson Kush Desai said the administration would appeal, but gave no other details.

Alongside Ms Cook, Mr Miran will join the Fed’s seven-member board following his 48-47 confirmation by the Senate on Monday and swearing-in.

While a rate cut this week would mark the first such move by the US central bank since December, financial markets’ focus may be more fixed on the implications of the ongoing Cook saga for the Fed as an institution and for the direction of monetary policy. Ms Cook denies any wrongdoing and has not been charged with any offence. The Fed has said it would follow any court ruling on Cook’s status.