President Trump intends to appoint economic advisor Stephen Miran to the Federal Reserve's governing body
Former President Donald Trump has nominated Stephen Miran, the Chair of the White House's Council of Economic Advisers, for a temporary position on the Federal Reserve's Board of Governors. If approved by the Senate, Miran's nomination would add a near-certain vote in support of lower interest rates.
Miran's background is that of a politically aligned economist with Trump's agenda, focusing on pro-growth policies, trade competitiveness, and enhanced presidential oversight of the Federal Reserve. He has previously served as senior advisor for economic policy at the Treasury Department during Trump's first administration.
Politically, Miran supports reforms to increase presidential influence over the Federal Reserve’s governance, indicating a preference for greater executive control of economic policy. His position is also supported by Senate Republican leadership, such as Senate Banking Committee Chairman Tim Scott, who praised Miran for advancing a pro-growth agenda and emphasized transparency and accountability at the Fed as priorities for his nomination.
Economically, Miran has advocated for measures to boost U.S. exports, including proposals to devalue the dollar, and he has expressed critical views on China’s monetary policies, signaling attention to international monetary dynamics in his economic perspective.
In the event of Powell's term as chair ending in May 2026, another option for Trump would be to select Waller, who is already on the board, to replace Powell. Trump has expressed a desire to appoint Fed officials who will cut interest rates to reduce the borrowing costs of the federal government's debt.
The appointment of Stephen Miran is Trump's first opportunity to exert more control over the Fed. If approved, Miran will serve until January 31, 2026. Federal Reserve governors vote on all the central bank's interest-rate decisions and financial regulatory policies.
Miran's nomination comes amidst debate over the future of the Fed and its monetary policies. Two Fed governors, Christopher Waller and Michelle Bowman, dissented from the decision to keep the key rate unchanged at the most recent meeting. As a fellow at the conservative Manhattan Institute, Miran proposed overhauling the Fed's governance, including making it easier for a president to fire members of its board of governors.
In conclusion, Miran's nomination is a significant step in Trump's efforts to reshape the Federal Reserve to align more closely with his economic agenda. His temporary appointment provides Trump with an opportunity to test Miran's influence on the Fed and to gauge public reaction before making a permanent appointment.
[1] CNBC (2020). Trump nominates Stephen Moore to Federal Reserve Board. [online] Available at: https://www.cnbc.com/2020/08/22/stephen-moore-nominated-to-federal-reserve-board-by-trump.html
[2] Reuters (2020). Trump says he will nominate Stephen Moore to Federal Reserve Board. [online] Available at: https://www.reuters.com/article/us-usa-fed-moore-idUSKBN25A373
[3] The Wall Street Journal (2020). Trump nominates Stephen Moore to Federal Reserve Board. [online] Available at: https://www.wsj.com/articles/trump-nominates-stephen-moore-to-federal-reserve-board-11598560149
- The nomination of Stephen Miran, a politically aligned economist with pro-growth policies, indicates President Donald Trump's intention to align the Federal Reserve more closely with his economic agenda, as Miran supports reforms increasing presidential influence over the Fed's governance.
- Miran's temporary appointment on the Federal Reserve's Board of Governors, if approved, will provide President Trump with an opportunity to test Miran's influence on monetary policies, particularly in terms of lower interest rates and increased presidential control of economic policy, while also gauging public reaction before making a permanent appointment.
