Prime Highlights
- Former President Donald Trump makes Stephen Miran a temporary Federal Reserve Board member until January 2026.
- Trump’s move is a bid to influence Fed policy ahead of central interest rate decisions.
Short Key Facts
- Stephen Miran is an ardent supporter of greater presidential control over the Federal Reserve.
- He would hold until Jan. 31, 2026, pending Senate confirmation.
Key Background
Chair of the Council of Economic Advisers Stephen Miran was selected by Donald Trump to occupy a vacant seat on the Federal Reserve Board. The temporary appointment follows the resignation of Governor Adriana Kugler, who is leaving to return to academics. The term for Miran would be through January 31, 2026, pending Senate confirmation when that branch resumes in September.
Miran’s nomination is also in line with Trump’s overall strategy of seeking greater direct influence over money policy-making in the Federal Reserve. More famous for his view favoring more stringent executive powers, Miran has been promoting more stringent central bank structural reforms. Some of his past proposals have included reducing the 14-year tenure of the Fed governors, enhancing the president’s power to nominate the regional Federal Reserve Bank heads, and limiting central bank officials’ post-government career moves.
While Miran’s board presence by itself may change the Fed’s internal discussions to a certain extent—i.e., to accommodate Trump’s rate-cut request—his actual power to implement sweeping reforms would be curtailed by both his interim position and Congressional approval mandates. Nearly all of the major reforms suggested by Miran would take Congressional initiatives and stand small chances of being approved so long as he remains in power.
However, even on a temporary basis, Miran’s appointment could have implications for future significant policy changes on key money. With economic indicators flashing warning signs that job creation is slowing and inflation is moderating, the Fed is being pressured to fiddle with interest rates. Trump has long complained about the central bank in the past for failing to act quickly enough on rate moves. Having a voice aligned like Miran on the board, albeit temporary, would assist in guiding Trump’s economic agenda, particularly if he runs again as president in the upcoming election.
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