Trump privately surveils trustworthy agents within the Federal Reserve's council.
Stephen Miran, the head of the White House Council of Economic Advisers, has been appointed by President Donald Trump as an interim appointee to the Federal Reserve's board of directors [1][2]. The nomination comes following the unexpected resignation of Adriana Kugler, a former Fed board member, which left a vacancy on the board.
Miran is known for his critical stance on the Federal Reserve's recent performance. In a 2024 paper co-authored with Dan Katz, he argued that the Fed has suffered from "groupthink" and has overstepped its mandate by engaging in political areas beyond its proper remit [1]. This paper recommended significant reforms, including increasing presidential control over the Fed, such as granting the president at-will power to fire Fed board members and bank presidents, transferring Fed budget control to Congress, and shifting regulatory authority over banks to the Treasury Department [2].
However, these proposals have raised concerns from analysts about potentially undermining the Fed's independence, characterizing the nomination as signaling Trump's intention to diminish the central bank's autonomy if such reforms were enacted through Congress [2]. Such sweeping changes would face significant political hurdles, including opposition from Democrats and the Senate filibuster rule [2].
The Senate must approve Miran's appointment to the Federal Reserve's board of directors. The post in the Fed's governing council has been vacant since Adriana Kugler's resignation. In its latest meeting, the Fed left the interest rate unchanged, keeping it in the range of 4.25 to 4.5 percent for the fifth consecutive time.
Meanwhile, US President Donald Trump has continued to press for significant interest rate cuts and has repeatedly criticized Jerome Powell, the current Fed Chair. Trump has been insulting Powell for months, calling him names such as "fool," "idiot," and "loser." Despite this, Jerome Powell plans to complete his term as Fed Chair, which ends in May.
Trump is also currently interviewing candidates for the Federal Reserve's board of directors position. According to an earlier report, Fed board member Christopher Waller is emerging as a leading candidate to succeed Fed Chair Jerome Powell. Two of the potential candidates mentioned by Donald Trump are Kevin Hassett and Kevin Warsh, both known figures in the White House economic advisory circle.
References:
[1] CNBC (2025, August 20). Trump nominates Stephen Miran as interim Fed governor. Retrieved from https://www.cnbc.com/2025/08/20/trump-nominates-stephen-miran-as-interim-fed-governor.html
[2] The New York Times (2025, August 21). Trump's Pick for Interim Fed Governor Stirs Controversy. Retrieved from https://www.nytimes.com/2025/08/21/business/economy/trump-fed-miran.html
- The appointment of Stephen Miran, known for his critical stance on the Federal Reserve, as an interim Federal Reserve board member could potentially signal a shift in community policy regarding the institution's autonomy, given his recommendations for increased presidential control.
- Analysis of Miran's nomination suggests that his proposed policy-and-legislation changes, such as the president's power to fire Fed board members, could raise concerns about the central bank's independence, particularly considering the political hurdles in implementing such reforms.
- In the broader context of general-news, Miran's nomination and the ongoing discussions about Fed governance occur against a backdrop of war-and-conflicts, crime-and-justice, and economic and monetary union issues, showcasing the intricate relationship between politics and the banking sector.
