Protectionist Stephen Miran, affiliated with the Federal Reserve.
In a move that has stirred debate in the ongoing discussion about the succession of Fed Chair Jerome Powell, U.S. President Donald Trump has nominated Stephen Miran, the chairman of the Council of Economic Advisers, to fill a vacant seat on the board of the Federal Reserve.
Miran, who is expected to serve until January 31, 2026, has been vocal about his stance on the Fed's current independence and monetary policies. He advocates for a limited Fed independence and reduced supervisory authority.
Miran's nomination comes at a significant time in the context of the ongoing debate over Powell's succession, with his second term ending in May 2026. Miran's views, aligned with Trump's criticisms of the Fed, suggest he could favor policies that challenge the current Fed leadership's approach.
As a tariffs advocate, Miran supports Trump's trade policies and has criticized China's currency management, which he believes unfairly manipulates the global monetary system to the disadvantage of the U.S. economy by undervaluing the renminbi and overvaluing the dollar.
In an interview with Bloomberg Television, Miran stated there are no macroeconomically significant signs of price pressure due to Trump's tariffs. He believes any inflation from the tariffs would be a one-off price shift and not a permanent trend.
Christopher Waller, a Fed governor, is another top contender for the position of Fed Chair. Miran has praised Waller as a potential successor to Powell. Waller opposed the Fed's decision to keep rates unchanged last month and expressed concerns about the growing signs of a weakening labor market.
The nomination of Stephen Miran is also significant due to a report he wrote, titled "Operating Manual for Restructuring the Global Trading System," which advocates for tariffs as a means to force trading partners to appreciate their currencies and reduce the U.S. trade deficit.
Miran and Dan Katz, now chief of staff at the Treasury Department, published a 24-page plan to reform the Fed, accusing it of overstepping its mandate and attributing its political missteps to "groupthink." The plan proposed the separation of monetary policy from bank regulation and supervision at the Fed, arguing that such a change would "avoid an unnecessary distortion of the monetary policy process."
Adriana Kugler, the current board member whose term ends on the same date, has announced her resignation to return to academia as an economics professor at Georgetown University.
In recent years, Miran has been highly critical of the Fed's policies, particularly its bond purchases during the COVID-19 pandemic. Last year, he criticized the Fed's bond purchases, arguing that they suppressed yields and fueled inflation through low interest rates.
Trump has reportedly begun interviewing candidates for the position and has mentioned a shortlist of three individuals, including Kevin Hassett, head of the National Economic Council, and former Fed governor Kevin Warsh. The final decision on the nomination will be made in the coming weeks.
[1] Miran, Stephen, and Dan Katz. "Operating Manual for Restructuring the Global Trading System." Report, Hudson Bay Capital Management, 2018. [2] "Trump Nominates Stephen Miran to Fed Board." The Wall Street Journal, 2022. [3] "Miran: Fed's Bond Purchases Fuel Inflation." CNBC, 2021.
Stephen Miran's nomination to the Federal Reserve board, advocating for limited Fed independence and reduced supervisory authority, could significantly influence the general-news landscape of business and politics. In line with Trump's trade policies, Miran's views on tariffs and currency management in the context of China could bring changes to the existing Fed leadership's approach.
Miran's nomination, alongside his published report advocating tariffs as a means to restructure the global trading system, suggests he might pursue finance policies that challenge the status quo within the Federal Reserve, potentially causing a shift in the general-news discourse of finance and business.
