US President Donald Trump has chosen Council of Economic Advisers Chairman Stephen Miran to serve as a Federal Reserve governor.
“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,” Trump said on Thursday in a social media post.
Donald Trump and new Federal Reserve governor Stephen Miran.
The president said that Miran, who will need to be confirmed by the US Senate, would only serve the expiring term of Fed Governor Adriana Kugler, which ends in January.
“In the meantime, we will continue to search for a permanent replacement,” Trump said.
Miran, who holds a PhD in economics from Harvard University, has echoed Trump’s call for lower interest rates. Miran has established a reputation for delivering his views in a more measured tone than many other Trump advisers. Nonetheless, he has been a sharp Fed critic and proposed changes to the central bank that some would view as unorthodox.
Trump has been a vocal critic of Federal Reserve chair Jerome Powell, saying the central bank has waited too long to cut interest rates. Powell has said the Fed is waiting to see the full impact of Trump’s tariffs.
Federal Reserve Board governor Adriana Kugler’s unexpected resignation opens the door for Trump to tighten his grip on the Fed.Credit: AP
Joe Gilbert, a portfolio manager at Integrity Asset Management, said Miran was “not an expected pick, but it is within the framework that the market was looking for”.
“Miran would provide another voice to conceivably support easier Fed policy,” Gilbert said.
“This reinforces the belief that the Fed will be easing interest rates for the balance of the year as it is unlikely for the Fed to hold rates steady with three dissents on the board. We have officially entered an easing cycle for markets.”
Bloomberg
Read the full article here
