U.S. President Donald Trump has announced the temporary appointment of Dr. Stephen Miran, current Chair of the Council of Economic Advisers, to fill a vacant seat on the Federal Reserve Board of Governors. The decision comes amid growing pressure on Fed Chair Jerome Powell to step down and allow for a more aggressive approach to lowering interest rates.
Interim Role, Big Implications
Miran will take over the remainder of the term of Adrian Kugler, who is stepping down from the Board this Friday. His interim term will last until January 31, 2026. Though temporary, this appointment may influence the future direction of U.S. monetary policy.
Trump shared the news via Truth Social:
“I am honored to announce that I’ve appointed Dr. Stephen Miran to serve on the Federal Reserve Board through January 31, 2026. We will continue to search for a permanent replacement.”
The president praised Miran’s academic and professional credentials:
“Stephen earned a PhD in economics from Harvard and served with distinction during my first term. He’s been by my side from the start of my second term, and his expertise in economics is unmatched. He’ll do an outstanding job.”
Wall Street Experience Meets Washington
Dr. Miran previously served as an economic policy advisor at the U.S. Treasury during Trump’s first term and was also chief strategist at Hudson Bay Capital Management. His appointment was welcomed by parts of the financial community. On X, Satyam Singh wrote:
“His knowledge and experience in economics will be especially valuable during this transitional period.”
A Push Toward Rate Cuts?
Analysts suggest Miran’s appointment could strengthen the faction in favor of interest rate cuts within the Fed. Currently, rates stand between 4.25% and 4.50%, and board members Chris Waller and Michelle Bowman recently voted to keep them unchanged.
While Fed Chair Jerome Powell remains cautious due to inflation risks, Trump insists that high rates are no longer necessary. He believes lower rates would boost borrowing and stimulate economic growth.
Kugler’s Surprise Exit
Departing Fed Governor Adriana Kugler surprised many with her sudden resignation. Appointed in September 2023, her term was set to expire in January 2026. Instead, she’ll return to Georgetown University this fall to resume her academic career.
Her departure presents another opportunity for Trump to shape the Fed’s leadership. With support from Senate Republicans, his next appointee could further shift the balance of power and increase pressure on Powell.
Trump vs. Powell: A Clash Over Rates and Tariffs
Trump has long argued that the current high interest rates are unjustified. Powell, however, warned that Trump’s tariff policies may already be influencing prices. At a recent press conference, Powell stated:
“Higher tariffs have started to show up more clearly in the prices of certain goods, but their overall impact on economic activity and inflation remains to be seen.”
#Fed , #TRUMP , #Powell , #FederalReserve , #worldnews
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