Federal Supporter Stephen Miran
Stephen Miran Nominated to Federal Reserve Board
U.S. President Donald Trump has nominated Stephen Miran, the current chairman of the Council of Economic Advisers, to fill a vacant seat on the Federal Reserve's Board of Governors. If confirmed by the Senate, Miran is expected to serve until January 31, 2026.
Miran, an economist with a strong academic background, has served as Chair of the Council of Economic Advisers since 2025. His nomination comes at a significant time, as the ongoing debate surrounding the succession of Fed Chair Jerome Powell, whose second term ends in May 2026, is heating up.
Regarding trade policy, Miran is known for his defense of tariffs, aligning with Trump's economic platform that favors protectionist measures. This contrasts with many traditional Federal Reserve officials who typically hold more free-trade-oriented views.
On interest rates and Federal Reserve policies, Miran has expressed skepticism about the Fed’s independence. He argues that the Federal Reserve is already closely linked with the executive branch via informal communication channels between Treasury and Fed officials, and personnel crossover. Miran suggests that the traditional wall between fiscal policy and monetary policy is partly broken, implying that the Fed’s decisions, including on interest rates, should align more closely with the White House’s economic agenda.
Miran also advocates for increased transparency and accountability at the Fed to ensure it aligns with its mandate and avoids undue political influence. This stance has been supported by Senate Banking Committee Chairman Tim Scott in support of Miran's nomination.
In an interview with Bloomberg Television, Miran denied the inflationary consequences of increased tariffs on U.S. trading partners. He stated that there are no macroeconomically significant signs of price pressure from Trump's tariffs, and any potential inflation would be a one-time price shift, not a permanent trend.
Meanwhile, Christopher Waller, who has served on the Fed's board since 2020 and is considered a front-runner for the position, has expressed concerns about the growing signs of a softening labor market. Trump has reportedly begun interviewing candidates for the top Fed job, with "two Kevins" - Kevin Hassett and Kevin Warsh - mentioned as potential candidates.
Miran has praised Waller for his independent voice and his opposition to the Fed's decision to keep rates unchanged last month. He commended Waller for not getting caught up in the "tariff madness" that many others seem to have, particularly at the Fed.
The report titled as a "user's manual for restructuring the global trading system," which Miran co-authored with Dan Katz, now chief of staff at the Treasury Department, advocates for the use of tariffs to force trading partners to appreciate their currencies and reduce the persistent U.S. trade deficit.
Adriana Kugler, the outgoing board member, has announced her resignation and will return to academia as an economics professor at Georgetown University. Her departure leaves a vacancy on the Fed's Board of Governors, which Trump is now filling with Miran's nomination.
This nomination marks a potential departure from the Fed’s historic stance of operational independence, especially regarding interest rate decisions, as Miran's views on the Fed's independence and role in fiscal policy could lead to a greater political influence on Fed policy under his tenure.
- Stephen Miran's nomination to the Federal Reserve Board, if confirmed, could potentially impact the finance sector, as his views on the Fed's independence and role in fiscal policy could lead to increased political influence.
- Miran's academic background, trade policy stances, and advocacy for increased transparency at the Fed have placed him in the center of business, politics, and general-news discussions, particularly with regards to the ongoing debate surrounding the succession of Fed Chair Jerome Powell.
