Trump Nominates Stephen Miran to Federal Reserve Board as Critic of Powell

Strategic Insights -

President Trump has nominated Stephen Miran, a longtime ally and critic of Federal Reserve Chairman Jay Powell, to temporarily join the central bank's policy-setting panel. Miran, chair of the White House's Council of Economic Advisers, is expected to bring a dissenting voice to the Federal Open Market Committee, where he will join fellow Trump appointees Christopher Waller and Michelle Bowman. Miran has been a vocal advocate for Trump's tariff policy, arguing that it will not be inflationary, a view that clashes with Powell's assessment.

Key Takeaways:

  • Stephen Miran, a critic of Federal Reserve Chairman Jay Powell, has been nominated by President Trump to join the central bank's policy-setting panel for a temporary period.
  • Miran, chair of the White House's Council of Economic Advisers, will serve through to the end of January while the administration searches for a "permanent replacement" to fill the seat vacated by Adriana Kugler.
  • Miran holds a PhD in economics from Harvard and was previously a policy adviser at the Treasury department, and will get a vote on the rate-setting Federal Open Market Committee.
  • Economists broadly expect Miran to join fellow Trump appointees in supporting the president's calls for rate cuts, following Trump's announcement that he expects a quarter-point rate cut at the Fed's next meeting in September.
  • Miran has criticized Powell for advocating for fiscal stimulus measures to fight the economic ructions caused by the Covid pandemic in 2020, and has said the Fed chief has moved too slowly on adjusting monetary policy.
  • Several Trump administration officials, including Treasury secretary Scott Bessent, have called for an overhaul of the Fed's governance, and Miran's nomination is seen as a reflection of the administration's ongoing efforts to exert greater control over the central bank.

Statistics:

  • 750,000 (number of jobs lost in the last month, according to data last week)
  • 4.25-4.5% (current range of the federal funds rate)
  • 3% (reduction in interest rates called for by Trump)
  • 25 basis points (expected rate cut at the next Fed meeting in September)
  • 5 (number of times the Fed has held rates steady this year)

Sources:

  • Donald Trump's statement on Truth Social (no date provided)
  • Quote from Stephen Miran in a TV interview (no date provided)
  • Statement by the Federal Reserve (no date provided)
  • Data from JPMorgan (no date provided)
  • Report by Bloomberg (no date provided)
  • Statement by Scott Bessent, Treasury Secretary (no date provided)