Trump nominates Stephen Miran to the Federal Reserve Board, dovish voices may strengthen rate cut expectations

U.S. President Trump announced that he has selected Stephen Miran, the chairman of the White House Council of Economic Advisers, to serve on the Federal Reserve Board.

"He has been by my side since the beginning of my second term, and his economic expertise is unparalleled, he will excel in his duties," Trump said on social media on Thursday.

The president stated that Miran, who requires Senate approval, will only take over the remainder of the term of Federal Reserve Board member Adriana Kugler, whose term expires in January next year.

"In the meantime, we will continue to look for a permanent successor," Trump added.

Miran, who holds a Ph.D. in economics from Harvard University, has consistently echoed Trump’s call for interest rate cuts. Compared to the more extreme rhetoric of other Trump advisers, he has built a reputation for his cautious style, yet he remains a sharp critic of the Federal Reserve, and his proposed central bank reform plan has been viewed by some as unconventional.

Joe Gilbert, portfolio manager at Integrity Asset Management, commented: "Most unexpected, but aligns with market expectations. Miran may become another voice supporting accommodative policy."

"This strengthens the market's expectations for a rate cut by the Federal Reserve this year - it will become increasingly difficult to maintain rates when there are three dissenting votes on the board," Gilbert stated. "We have officially entered an easing cycle."

However, David Beckworth, a senior researcher at the Mercatus Center at George Mason University, expressed reservations: "He is just one of nine, unable to drive structural reform or facilitate larger rate cuts, especially with only a few months left in his term."

Despite a gradual cooling of the U.S. economy, the Federal Reserve has remained on hold this year, partly due to concerns that Trump's aggressive tariff policies could drive inflation higher. In a Bloomberg TV interview on Thursday, Miran said that Trump's tariffs on trading partners "have shown no evidence of macro-level price pressure." "Even if tariffs trigger inflation, it is merely a one-time price level fluctuation and will not form a sustained trend." #下一任美联储主席人选