Fed Governor Nominee Milan Pledges to Uphold Central Bank Independence

　　Xinhua Finance, Beijing, September 4 – The U.S. Senate Banking Committee will hold a hearing on Thursday morning local time on Stephen Milan, President Trump’s nominee for the Federal Reserve Board. In pre-submitted hearing remarks, Milan stated: "In my view, the most important task of a central bank is to prevent economic depression and hyperinflation. The independence of monetary policy is a key element of its success."

　　Milan said: "If confirmed, I plan to faithfully carry out my duties in accordance with the mission mandated by Congress. My opinions and decisions will be based on analysis of the macroeconomy and judgments most conducive to long-term management. The Federal Open Market Committee is an independent body with significant responsibilities, and I intend to uphold that independence and do everything I can to serve the American people."

　　However, Milan also raised some questions about the Fed’s regulatory activities beyond its dual mandate, including the central bank’s balance sheet.

　　He stated: "The Fed regulates the world’s most important financial institutions. It sets different funding prices for borrowers and lenders (including other central banks). The ultimate composition of the Fed’s balance sheet remains an open question."