Trump Proposes Stephen Miran as Interim Appointee for the Fed Position
Stephen Miran, an American economist with a Ph.D. in economics from Harvard University, has been nominated by President Donald Trump to fill a vacancy at the Federal Reserve's Board of Governors on a temporary basis. If confirmed, Miran could potentially be elevated as the Fed chair, a role previously held by Janet Yellen and Ben Bernanke, who led the Council of Economic Advisers (CEA) before helming America's central bank.
Miran has been a vocal supporter of Trump's economic agenda and has been credited with creating the intellectual backbone of Trump's expansive tariff policy. He has served in the Treasury Department during Trump's first term and currently chairs the Council of Economic Advisers.
Regarding his views on tariffs, Miran is a proponent of protectionism and argues in favor of tariffs not only to protect domestic industries but also as strategic leverage in trade negotiations. He has criticized the conventional economic consensus against tariffs, suggesting many models fail to account for trade deficits. His policy paper advocates using the U.S.’s economic scale to rebalance global trade rules that he sees as unfair.
On interest rates, Miran advocates for lower rates to stimulate economic growth. He has been critical of the Federal Reserve’s inflation-targeting policies that tend to prioritize raising interest rates to combat inflation. This stance contrasts with the traditional Fed approach but aligns with his broader economic philosophy favoring growth and employment support.
Regarding the Federal Reserve’s independence, Miran holds skeptical views and has proposed reforms to limit Fed autonomy. He and co-author Dan Katz argue that the Fed suffers from “groupthink” leading to policy errors and overreach into political areas like credit rationing and banking regulation. They recommend limiting the Fed strictly to monetary policy, shortening the terms of Fed governors, allowing greater White House control, preventing Fed governors from serving in the executive branch for four years post-term, and subjecting Fed funding to congressional appropriations. These changes, they view, are necessary to reduce “power without accountability” while ensuring the Fed remains aligned with long-term goals but not insulated from political oversight.
In a report published last year, Miran called the Fed's independence as an outdated "shibboleth" and advocated for shorter terms for Fed governors. If confirmed, Miran's arrival at the Fed would likely bring another voice in support of lower interest rates.
The confirmation process for Miran is expected to take a couple of weeks to two months. If Miran becomes Fed chair, he could potentially face a shorter term based on his advocacy in the Manhattan Institute report. Adriana Kugler, who was previously at the Federal Reserve's Board of Governors, resigned without citing a reason for her departure.
Stephen Miran has also worked as a senior fellow at the Manhattan Institute, a conservative think tank, and served as a senior strategist at Hudson Bay Capital, a global investment firm. He is the author of a November 2024 paper outlining a tariff-centric approach to re-balancing US trade deficits. Miran remains an ardent supporter of using tariffs to reshape global trade.
If Miran is confirmed as a Fed governor, he could potentially play a significant role in shaping economic policy in the United States. His nomination and the potential for his confirmation have sparked debate among economists and policymakers regarding the appropriate balance between central bank independence and political accountability.
- Stephen Miran's nomination to the Federal Reserve's Board of Governors, if confirmed, could bring a voice advocating for lower interest rates and reconsidering the Fed's independence, which he perceives as outdated.
- Miran's views on the Federal Reserve's role, particularly its independence and the use of tariffs, generate ongoing debate among economists and policymakers, with potential implications for future policy-and-legislation relating to business and general-news.
