Trump Picks Stephen Miran for Short-Term Fed Board Role
So here’s what’s making headlines in the economic and political world right now. Former President Donald Trump has announced that Stephen Miran, the current chair of the White House’s Council of Economic Advisers, is being nominated to fill a temporary vacancy on the Federal Reserve’s Board of Governors. This opening comes after Adriana Kugler resigned from her post on August 1. If confirmed, Miran would step in for the remaining six months of Kugler’s term, which wraps up on January 31. After that, Trump says he’ll select a permanent replacement.
Now, Stephen Miran isn’t new to the economic scene. He’s worn quite a few hats—senior fellow at the conservative Manhattan Institute, senior strategist at Hudson Bay Capital, and even senior advisor for economic policy at the Treasury Department during the pandemic recession, where he helped shape policies to stabilize the economy. Clearly, he’s got both the academic and market credentials that could influence Fed decision-making, even if just for a short while.
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Ordinarily, a short-term appointment like this wouldn’t make much noise. But this one comes at a tense moment. Trump has been openly critical of Fed Chair Jerome Powell for months, using some pretty blunt language to push for lower interest rates. And remember, the Fed’s Board of Governors plays a direct role in setting those rates.
Right now, the Fed is in a holding pattern. They’ve kept interest rates steady while assessing how Trump’s high tariffs might affect inflation. However, a disappointing jobs report in July has tilted the odds heavily toward a September rate cut—Fed fund futures are giving it a 93% chance. That means Miran’s role might not dramatically shift the Fed’s direction in the short term, since the momentum toward a cut is already building. Plus, there’s the timing issue: he might not be confirmed before the Fed’s September 16–17 meeting.
That said, he could still have a say in how much rates are lowered later this year. At the Fed’s June meeting, policymakers were split—some wanted multiple cuts in 2025, others wanted none. Even so, analysts point out that Trump won’t have enough allies on the committee to completely overhaul policy for now. The Fed still has 12 voting members, and traditionally it’s been independent from political pressure.
But here’s where things get interesting: Trump’s strong-arming of Powell and now this appointment are being watched closely. Some say it risks the Fed’s independence, which could unsettle markets. And with Powell’s term ending in May, Trump will have a much bigger opportunity to reshape the Fed in his image. For now, though, Miran’s short-term role could be more symbolic—showing where Trump’s priorities lie—than revolutionary for monetary policy.
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