Trump plans to appoint Stephen Miron, his top economic advisor, to the Federal Reserve's board of governors

Trump plans to appoint Stephen Miron, his top economic advisor, to the Federal Reserve's board of governors

New Federal Reserve Board Member Miran Brings Pro-Growth, Pro-Rate Cut Agenda

Stephen Miran, nominated by former President Donald Trump to the Federal Reserve's Board of Governors, is set to bring a political ally and staunch supporter of Trump’s economic policies to the central bank. His appointment is expected to add a pro-rate-cut vote to the Federal Open Market Committee (FOMC), potentially shifting the Fed’s monetary policy towards easing.

Miran, who has served as the chair of the White House Council of Economic Advisers and senior advisor at the Treasury Department during Trump’s first term, has been a major defender of Trump's income tax cuts and tariff hikes. He has also played down the risk of Trump's tariffs generating higher inflation.

In commentaries on the Fed and international economics, Miran has expressed support for some unconventional economic views. He and Dan Katz, now a top official at the Treasury Department, wrote a paper suggesting that the Fed's current governance has facilitated groupthink that has led to significant monetary-policy errors. 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.

Last year, Miran proposed measures to reduce the value of the dollar to boost exports and reduce the U.S. trade deficit. If approved by the Senate, Miran will serve until January 31, 2026, temporarily filling a seat vacated by Adriana Kugler, a Biden appointee.

The appointment of Miran may heighten concerns about political influence over the Fed. However, his presence is seen as an indicator of ongoing political pressures on the Fed, raising concerns about the central bank’s independence from political influence.

If approved, Miran's nomination would add a near-certain vote in support of lower interest rates. Fed governors vote on all the central bank's interest-rate decisions and financial regulatory policies. Another possible candidate for the chair position is Christopher Waller, who is already on the Federal Reserve's board.

Marco Casiraghi, senior economist at investment bank Evercore ISI, sees Miran's appointment as a positive sign for Waller’s chances of becoming chair. The balance of votes within the 12-member voting group on interest rate decisions depends on the overall policy impact, with other governors also holding seats.

In summary, Stephen Miran brings a politically aligned, pro-growth and pro-rate-cut influence to the Fed’s Board of Governors, likely advocating monetary easing and supporting Trump-style trade and tax policies. His temporary appointment could contribute to a shift in the Fed's interest rate decisions and monetary policy by injecting a more politically driven, dovish voice at a time when inflation and tariff-related economic effects remain contentious issues.

1. The Federal Reserve's Board of Governors is expecting a new member in the form of Stephen Miran, a proponent of Trump's economic policies.
2. Miran's appointment could add a pro-rate-cut vote to the Federal Open Market Committee (FOMC), potentially shifting the Fed’s monetary policy towards easing.
3. During Trump’s first term, Miran served as the chair of the White House Council of Economic Advisers and senior advisor at the Treasury Department.
4. Miran has been a major defender of Trump's income tax cuts and tariff hikes, and has downplayed the risk of Trump's tariffs generating higher inflation.
5. In commentaries on the Fed and international economics, Miran has expressed support for unconventional economic views.
6. He has suggested that the Fed's current governance has facilitated groupthink that has led to significant monetary-policy errors.
7. Miran has proposed overhauling the Fed's governance, including making it easier for a president to fire members of its board of governors.
8. Last year, Miran proposed measures to reduce the value of the dollar to boost exports and reduce the U.S. trade deficit.
9. If approved by the Senate, Miran will serve until January 31, 2026, temporarily filling a seat vacated by Adriana Kugler, a Biden appointee.
10. The appointment of Miran may heighten concerns about political influence over the Fed.
11. However, his presence is seen as an indicator of ongoing political pressures on the Fed, raising concerns about the central bank’s independence from political influence.
12. If approved, Miran's nomination would add a near-certain vote in support of lower interest rates.
13. Fed governors vote on all the central bank's interest-rate decisions and financial regulatory policies.
14. Another possible candidate for the chair position is Christopher Waller, who is already on the Federal Reserve's board.
15. Marco Casiraghi, senior economist at investment bank Evercore ISI, sees Miran's appointment as a positive sign for Waller’s chances of becoming chair.
16. The balance of votes within the 12-member voting group on interest rate decisions depends on the overall policy impact, with other governors also holding seats.
17. In sports-related news, the WNBA, NBA, MLB, NHL, golf tournaments like the Masters, Grand Prix, horse racing, tennis, and even sports-betting markets are all following the political and economic developments in Washington.
18. The weather forecasting industry is also keeping a close eye on the political climate, as weather-related policies can significantly impact the real estate, business, and job markets in cities like Seattle, which is seeing increased migration due to its booming tech industry.

Read also: