Trump intends to appoint Stephen Miran, his top economic advisor, to the U.S. Federal Reserve board.
The US President Donald Trump has nominated Stephen Miran, the chair of the White House Council of Economic Advisers, to the US Federal Reserve's board of governors for a temporary four-month period. If approved by the US Senate, Miran's term would end on January 31, 2021.
Miran's nomination signals a potential shift in the Federal Reserve's policy direction, particularly on interest rates. Known as a strong advocate for lower interest rates and tariff expansion, Miran could add a near-certain vote in support of lower interest rates to the Federal Open Market Committee (FOMC).
At its most recent meeting last week, Fed officials kept their key rate unchanged at 4.3 percent, but with Miran on the board, the FOMC's decisions could change in the near term. This may introduce a pro-rate-cut vote to the FOMC and could affect monetary policy decisions.
However, it is important to note that even with Miran on the board, 12 Fed officials vote on interest rate policy. Two of these governors - Christopher Waller and Michelle Bowman - dissented from the decision to keep the key rate unchanged.
Miran's background in economic advisory roles under Trump, his views favoring rate cuts and tariffs, and his nomination to a key Federal Reserve spot could lead to more accommodative monetary policy. His appointment could also potentially increase presidential influence over the Fed, a move that might heighten concerns about political influence over the Federal Reserve.
Miran has been a major defender of Trump's income tax cuts and tariff hikes. He argues that the combination of income tax cuts and tariff hikes would generate enough economic growth to reduce budget deficits. However, many Fed officials remain concerned that Trump's sweeping tariffs could push inflation higher.
Miran's nomination is temporary, as Trump is expected to nominate another candidate for the full 14-year term on the Fed Board. If confirmed, Miran would fill the seat vacated by Adriana Kugler, a Biden appointee.
Trump's nomination is his first opportunity to exert more control over the Federal Reserve, one of the few remaining independent federal agencies. The choice of Miran for the Federal Reserve's board of governors might heighten concerns about political influence over the Fed. Financial markets and institutions are advised to closely watch the Senate confirmation process and upcoming FOMC meetings for potential shifts in policy tone with his appointment.
[1] "Trump Nominates Stephen Miran to Federal Reserve Board," The Wall Street Journal, 7 August 2025. [2] "Stephen Miran: The Man Who Could Change the Federal Reserve," The New York Times, 8 August 2025.
- Stephen Miran's nomination to the Federal Reserve's board of governors, given his background in finance and known advocacy for policies such as lower interest rates and tariff expansion, has sparked discussions about potential changes in the Fed's monetary policy and the possible increase of presidential influence over the Federal Reserve, a concern that might heighten due to his temporary appointment.
- As politics and policy-and-legislation continue to shape economics, the general news surrounding the US President's nomination of Stephen Miran to the Federal Reserve's board could significantly influence monetary policy decisions, especially with regards to interest rates, providing a point of interest for financial markets and institutions.
