Trump’s Fed Pick Challenges Powell with Bold Rate-Cut Push
Stephen Miran, Donald Trump’s new appointee to the Federal Reserve’s interest-rate-setting board, has been making waves with some very bold economic views. At a recent luncheon with the Economic Club of New York, Miran doubled down on his call for the Fed to cut interest rates much more aggressively than it has so far.
Just last week, the Federal Reserve trimmed rates by a quarter of a percentage point, lowering them into the 4% to 4.25% range. That’s the lowest level seen since early 2023. But Miran wasn’t satisfied—he was the only board member to vote against the move, insisting instead that a half-point cut was needed. He went further in his remarks, arguing that rates should actually fall below 3% by the end of the year.
Now, this stance puts him directly at odds with Fed Chair Jerome Powell. Powell has taken a more cautious approach, warning that tariffs introduced by the Trump administration are starting to push up prices in some categories. Powell has emphasized that while those effects might be temporary, they could also risk becoming more persistent—a situation that requires careful management.
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Miran, on the other hand, dismissed those concerns outright. He argued that the inflationary impact of tariffs has been exaggerated and that exporters abroad would likely absorb much of the cost by lowering their own prices. He also pointed to housing as the main source of inflation, noting that the rental market could cool down in the future, especially as Trump’s immigration policies reduce population growth.
It’s worth noting that inflation has been creeping up. Since April, the consumer price index has risen from 2.3% to 2.9%, edging closer to 3%. The Fed’s long-standing goal has been 2%, a benchmark not reached since 2021. But Miran has called that target too restrictive, even suggesting that trying to pin down inflation to such a precise number can lead to unnecessary micromanagement.
Miran’s presence on the Fed is significant for another reason: he’s also the chair of Trump’s Council of Economic Advisers, a role he is temporarily stepping away from while serving on the Fed board until January 2026. It’s the first time in nearly a century that someone has held both a Fed seat and a senior role in the executive branch, underscoring his unique position as both policymaker and political appointee.
Despite the clash in views, Miran has insisted that his analysis is his own and not dictated by Trump. He made it clear that he will continue to speak up against the Fed’s cautious stance, even if it means standing alone. In his words, consensus for the sake of appearance isn’t enough—he would rather cast a dissenting vote than agree to a policy he doesn’t believe in.
This emerging tension between Miran’s push for rapid rate cuts and Powell’s more measured approach highlights the sharp debate over how best to guide the U.S. economy through a period of uncertainty. For now, the stage is set for a rare public divide inside the central bank, one that could shape economic policy well into 2026.
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