Trump to replace Biden Fed, appointed by Stephen Miran, President of the White House economic advisers council

Trump said he appointed Stephen Miran, president of the White House economic advisers’ council, to fill a seat canceled by governor Adriana Kugler, a named Biden who moved on Friday. Miran, if it is approved by the Senate, will serve until January 31, 2026.

The appointment is Trump’s first opportunity to exercise more control over the Fed, one of the rare independent independent agencies. Trump relentlessly criticized the current president, Jerome Powell, for maintaining the short -term interest rates unchanged, calling her “an obstinate mor” last week on social networks.

Miran was a major defender of Trump’s income tax and pricing increases, arguing that the combination will generate enough economic growth to reduce budget deficits. He also played the risk that Trump’s prices will generate higher inflation, a major concern for Powell.

The choice of Miran can increase concerns about political influence on the Fed, which has traditionally been isolated from daily policy. The independence of the Fed is generally considered to be the key to ensure that this can take difficult measures to combat inflation, such as increase in interest rates, which politicians may not want to take.

The governors of the Federal Reserve vote on all interest rate decisions of the Central Bank, as well as on its financial regulatory policies.

The appointment of Miran, if approved, would add a vote almost certainly in support of lower interest rates. Kugler had echoed Powell the point of view that the FED should maintain unchanged rates and further assess the impact of prices on the economy before making movements.

Trump said he would name Fed officials who would reduce interest rates, which he said would reduce borrowing costs of the huge heap of debt of the federal government of $ 36 billions of dollars. Trump also wants lower rates to stimulate sales of moribund houses, which have been partly retained by higher mortgage costs. However, the Fed does not directly define the longer -term interest rates for things like house and car purchases.

During his last meeting last week, Fed officials kept their key rates unchanged at 4.3%, where it happened after three rate drops at the end of last year. But two nourished governors – Christopher Waller and Michelle Bowman – dissidents of this decision. The two were appointed by Trump in his first mandate.

However, even with Miran on the board of directors, 12 Fed officials vote on interest rate policy and many remain concerned that Trump’s radical prices could push higher inflation in the coming months.

Miran could be renovated in the longer term on the Fed once its initial appointment has been concluded, or replaced by another candidate.

Powell’s mandate as president ended in May 2026. However, Powell could remain on the Council of Governors until January 2028, even after having dismissed his functions as president. This would deny, or at least an opportunity for Trump to appoint an additional decision -maker to the Fed Board of Directors.

Consequently, an option for Trump is to appoint the possible replacement of Powell as president to replace Kugler once the remaining four months of his mandate. The main candidates for this position are Kevin Warsh, a former Fed governor from 2006 to 2011 and a frequent critic of the presidency of Powell, and Kevin Hassett, another economic adviser from Trump.

Another option for the next White House would be to select Waller, which is already on the board, to replace Powell and which has been largely mentioned as a candidate.

Marco Casiraghi, principal economist of the Evercore ISI investment bank, noted that the choice of Miran could be a positive sign for Waller, because Trump did not take the opportunity to name someone likely to become president once Powell has come down.

After the publication of the July job report last Friday, Miran criticized the Fed chair for not having reduced reference interest rates, saying Trump had proven to be correct on inflation during his first mandate and would be again. The president has put Powell to reduce short -term interest rates under the conviction that his prices will not make more inflationary pressures.

“What we see now in real time is again a rehearsal of this model where the president will end up having been proven,” said Miran on MSNBC. “And the Fed goes, with a gap and probably too late, will end up catching up with the president.”

Last year, Miran expressed support for certain unconventional economic opinions in the comments on the Fed and the international economy.

Last November, he proposed measures that would reduce the value of the dollar in order to stimulate exports, reduce imports and reduce the American trade deficit, an absolute priority for Trump. He also suggested that prices could push American trade partners, such as the European Union and Japan, to accept a cheaper dollar as part of a “Mar-A-Lago agreement”, an echo of the Plaza agreement concluded in the 1980s which lowered the value of the dollar.

As a member of the Manhattan Conservative Institute, Miran in March 2024 also proposed to revise the governance of the Fed, in particular by facilitating a president to dismiss members of his board of directors.

“The current governance of the Fed has facilitated group thinking that has led to important errors in monetary policy,” wrote Miran in an article with Dan Katz, now a senior official of the Treasury department.