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On August 8, 2025, Trump announced the nomination of Stephen Milan, the chairman of the White House Council of Economic Advisers, to serve as a Federal Reserve governor, replacing Adrianna Kugler for the remainder of her term (until January next year), during which he will continue to search for a permanent successor.

Milan holds a Ph.D. in economics from Harvard University, echoes Trump's calls for interest rate cuts, and is a sharp critic of the Federal Reserve. He has co-authored reform proposals, arguing that the Federal Reserve suffers from "groupthink" and overreach, advocating for stripping it of its banking regulatory powers to avoid contamination of monetary policy.

Following the announcement, the Bloomberg Dollar Spot Index gave back its intraday gains, while gold and cryptocurrency prices surged. Analysts have differing views: some believe Milan will strengthen the pro-easing tone and enhance expectations for interest rate cuts this year, as it would be more difficult to maintain rates if there are three dissenting votes, signaling the start of an easing cycle; others believe he is only one of nine governors and with just a few months in office, will find it hard to push for structural reforms or significant rate cuts.

Milan disagrees with Federal Reserve Chair Powell regarding the impact of tariffs on inflation. Milan believes that tariffs have not shown macro price pressures and that even if they induce inflation, it would only be a one-time fluctuation, while Powell worries that the inflation effects could be more persistent. He also praised last month’s pro-rate cut Governor Christopher Waller.

The Senate is in recess in August and is expected to reconvene in early September, and Milan's approval will take several weeks. The chairman of the Senate Banking Committee has pledged to expedite the review, while the committee's chief Democrat has questioned his independence and will rigorously scrutinize relevant issues. The Federal Reserve's next policy meeting is scheduled for September 16-17.