Trump nominates CEA Chair Stephen Miran to temporary Fed board vacancy
President Trump on Aug. 7 said he’s nominating Stephen Miran, who chairs the White House’s Council of Economic Advisers, to temporarily fill a vacancy on the Federal Reserve’s board of governors, helping Trump shape interest rate policy during a fraught period.
Miran would serve the roughly six months remaining in the term of former Fed Governor Adriana Kugler, who resigned on Aug. 1.
In a post on Truth Social, Trump said Miran would fill the spot until the term expires January 31, and he’ll then name a permanent replacement.
Who is Stephen Miran?
Miran was a senior fellow at the conservative Manhattan Institute and a senior strategist at Hudson Bay Capital, a global investment firm. He previously was a senior advisor for economic policy at the Treasury Department, helping create fiscal policy that supported the economy during the pandemic recession.
A temporary appointment on the Fed’s board typically wouldn’t draw much attention, said Barclays economist Jonathan Millar, a former Fed economist. But for months, Trump has badgered Fed Chair Jerome Powell to lower interest rates, calling him “a numbskull,” a “moron” and “too late,” among other epithets. The Fed’s governors also serve on its rate-setting committee.
Will the Fed cut rates in September?
Powell has said officials are waiting to see how much Trump’s historically high tariffs push up inflation before resuming a rate cutting campaign that has been on pause since December. But after a dismal July jobs report was released Aug. 1, several Fed policymakers suggested they favor a rate cut next month. Fed fund futures markets have put the odds of a rate decrease at 93%.
The Fed lowers rates to boost a softening economy and labor market. It raises rates to cool the economy to bring down inflation.
At a meeting last week, the Fed voted to hold its key interest rates steady. While nine policymakers supported standing pat, two Trump appointees – Christopher Waller and Michelle Bowman – dissented.
With a September rate reduction now more likely, Miran’s appointment has become less significant, Millar said. “The door is partly ajar anyway,” he said. “It does seem that things are shifting that way.” Plus, he said, it’s unlikely Miran would be confirmed by the Senate in time for the Sept. 16-17 meeting.
Miran could have a voice in how much the Fed lowers rates the rest of the year. At a June meeting, Fed policymakers were closely split, with 10 looking for at least two decreases in 2025 and nine predicting none or one.
Yet even with Miran in place as someone who Trump “knows will be loyal,” it’s unlikely Trump “will have enough people (on the committee) to fundamentally change policy,” Millar said. There are 12 voting members.
The Fed traditionally has been independent from politics so it can set policy based what's good for the economy. But analysts have said Trump’s aggressive campaign to browbeat Powell into backing rate cuts could jeopardize the Fed’s autonomy and unnerve markets.
Trump will have a bigger opportunity to remake the Fed when he picks a replacement for Powell, whose term expires in May.