Trump nominates his top economic adviser for vacant US Fed seat
Sign up now: Get ST's newsletters delivered to your inbox
Dr Stephen Miran has criticised the Fed and its chair in the past, and lauded Trump policies on trade.
PHOTO: AFP
Colby Smith and Tony Romm
Follow topic:
- Trump nominated Stephen Miran, Chairman of the Council of Economic Advisors, to the Federal Reserve Board until January 31, 2026, seeking greater influence.
- Miran, with a PhD in economics, supports tariffs and a weaker US dollar to boost American manufacturing and exports.
- Trump praised Miran's economic expertise and believes he will do an "outstanding" job, amid ongoing pressure on the Fed to cut rates.
AI generated
WASHINGTON – US President Donald Trump has nominated his top economic adviser, Dr Stephen Miran, to serve as a governor at the Federal Reserve – an institution the President has repeatedly attacked for failing to acquiesce to his demands for lower borrowing costs.
The opportunity to reshape the top ranks of the central bank arose when Ms Adriana Kugler, whose term as a governor was set to expire on Jan 31, 2026, unexpectedly announced last week that she was stepping down early.
As a governor, Dr Miran would have the ability to vote on interest rates as well as a range of other policy decisions. Those decisions have become more fraught in recent months, as officials have split over the right time to restart interest rate cuts.
Mr Trump made it clear on Aug 7 that Dr Miran, who has criticised the Fed and its chair Jerome Powell in the past, would serve in the position temporarily if confirmed by the Senate, although it is possible that he could stay on.
The White House is planning to run a separate process to nominate someone to fill the seat starting in February.
Mr Trump has had a highly contentious relationship with the central bank since returning to the White House.
He has repeatedly attacked Mr Powell personally, accusing him just last week on social media of being “TOO ANGRY, TOO STUPID and TOO POLITICAL”.
The source of their tension stems from the Fed’s reluctance to cut interest rates in 2025, after it lowered borrowing costs by a percentage point in 2024.
Mr Trump has called for interest rates to be 3 percentage points lower, arguing that the Fed is not only preventing the economy from booming, but also making interest payments on the federal debt expensive.
On Aug 6, Dr Miran acknowledged on CNBC that recent economic indicators – including downbeat reports on jobs and manufacturing – had not been “up to snuff”.
But, he maintained, “some significant headwinds to the economy have just turned into enormous tailwinds”, pointing to the passage of Mr Trump’s tax and policy Bill and the President’s new tariffs.
The next day, just hours before his nomination was announced, he took to Fox Business Network to laud Mr Trump and predict that the President’s policies on tax and trade would result in a “material uptick in economic growth.” NYTIMES
