(Bloomberg) -- Treasury Secretary Scott Bessent defended the unusual arrangement allowing Stephen Miran to take a leave of absence from his White House job while serving as a US Federal Reserve governor.
"I don't think there's anything irregular about it at all," Bessent told CNBC on Tuesday.
The nomination of Miran to the Fed board was approved by the US Senate in a vote on Monday evening, largely along party lines. He is expected to take part in the closely-watched Federal Open Market Committee meetings scheduled for Tuesday and Wednesday.
"If he didn't take the leave of absence, if he stepped down, the job would have remained open, and then he would have had to be reconfirmed whenever he leaves January, February," Bessent said. "I think the signaling value here is that the plan is for him to come back" to the White House Council of Economic Advisers as its chair.
Earlier: Miran Wins Fed Post Confirmation as Senate Backs Trump Pick
Miran told senators during his confirmation hearing that he would take an unpaid leave of absence to join the Fed, with no clarity on how long he might remain.
Democrats called the temporary leave of absence ridiculous and a threat to the independence of the central bank, especially after Trump moved to fire Fed Governor Lisa Cook and bragged to reporters he would soon have "a majority" on the Fed board.
President Donald Trump could nominate Miran for a full 14-year term to begin in February, or he could choose someone else. Miran could also stay on indefinitely if Trump chooses no one else to fill the new term.
Bessent, speaking to CNBC from London ahead of Trump's state visit to the UK, also said he had a very positive meeting with James Bullard, former president of the St. Louis Fed and a potential candidate to succeed Fed Chair Jerome Powell.
"He has incredible experience from the St Louis Fed," Bessent said. "He is an expert on monetary policy, deep academic background, and knows the institution of the Fed very well."
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