US President Donald Trump has appointed Council of Economic Advisors chairman Dr Stephen Miran to temporarily fill a vacancy in the Federal Reserve’s Board of Governors.
The Thursday appointment also comes amid months of pressure on Fed Chairman Jerome Powell to step down demanding the board stage a coup to lower interest rates. The Fed lowers rates to allow individuals and businesses to borrow more easily. On the other hand, to fight rising prices, it raises interest rates to make borrowing more difficult as well as reduce spending.
Miran’s interim term will run until next year
Miran will serve the remaining term of the outgoing Federal Reserve Governor Adriana Kugler who steps down on Friday. His term will run until 31 January 2026.
“It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026,” wrote President Trump on Truth Social, adding that the government will “continue to search for a permanent replacement.”
“Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!”
Trump.
Miran has served as an advisor of economic policy for Treasury Department during Trump’s first administration and was also a senior strategist at Hudson Bay Capital Management.
Some enthusiasts commenting on the news on X platform opine that Miran’s appointment is a step in the right direction, given his vast experience in the field.
“His background and experience in economics will no doubt be valuable during this interim period,” wrote Satyam Singh.
Could Miran’s appointment bring about rates cut?
According to reports , his appointment will bring not only a Trump administration official into the Fed board, but most likely also offer another official in favor of the central bank cutting interest rates as soon as its September policy meeting.
Recently, Fed governors Chris Waller and Michelle Bowman voted the Fed’s decision to keep interest rates flat within the range of 4.25% to 4.50%.
A recent Bloomberg report – on Thursday last week revealed that Waller is emerging as the most preferred candidate to replace Jerome Powell as a Fed Chair among Trump’s advisers.
Last week, the outgoing Kugler unexpectedly announced that she was stepping down from her role from the Fed’s Board of Governors, less than six months before her time was expected to expire on January 31, next year.
She has served as Fed governor since September 13, 2023 and will now return to Georgetown University as a professor this fall. As previously reported by Cryptopolitan , Kugler’s departure will now give President Trump another opportunity to challenge Powell as he only needs Senate Republicans to approve his nomination.
The vocal President Trump is of the view that the obtaining inflation no longer requires high interest rates. However, Powell has warned that increasing tariffs may feed into consumer prices.
“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” he told reporters on Wednesday.
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