Who is Stephen Miran, Trump’s short-term Fed pick?

United States President Donald Trump has named economist Stephen Miran to the Federal Reserve Board of Governors.

The Thursday appointment fills a seat left vacant by the resignation of Governor Adriana Kugler, a holdover from the Biden administration.

Though temporary — lasting until January 31, 2026 — Miran’s placement is the first step by Trump in reshaping the institution that has long operated with considerable independence from partisan politics.

The announcement highlights Trump’s ambition to influence monetary policy in his second term and arrives at a time when the president has voiced repeated frustration with the current direction of the Federal Reserve.

His criticisms have been most pointedly aimed at Fed Chair Jerome Powell, whose cautious stance on interest rate adjustments has drawn the ire of a White House keen on stimulating growth ahead of the 2026 fiscal year.

Who is Stephen Miran?

Stephen Ira Miran, born in 1984, currently chairs the Council of Economic Advisers, a post to which he was confirmed by the US Senate in March following a party-line vote.

All 53 Republicans supported his nomination, while 46 Democrats and independents opposed it; one Democratic senator, Tammy Duckworth of Illinois, did not vote.

Miran’s advisory role within the Trump administration reflects the trust the US president has placed in him across both terms.

Prior to his current position, Miran worked as a senior strategist at Hudson Bay Capital Management and co-founded the asset management firm Amberwave Partners.

His academic credentials include a doctorate in economics from Harvard University, and he has been associated with the conservative-leaning Manhattan Institute as an adjunct fellow.

Miran is no stranger to the federal government. He served as an economic policy advisor in the Department of the Treasury during the Trump administration’s first term, working under then-US Treasury Secretary Steven Mnuchin.

His influence on Trump’s first-term economic agenda — particularly on trade and tariffs — earned him a reputation as a key architect of protectionist strategies, especially regarding efforts to rebalance trade through tariff enforcement.

What could Stephen Miran’s role include?

Although Miran’s term as a Federal Reserve Governor is only for the remainder of Kugler’s original tenure, which expires at the end of January next year, the implications of this appointment are significant.

Members of the Federal Reserve Board vote on interest rate decisions, financial regulations, and other policies that impact not only the domestic economy but global financial markets.

Miran’s appointment signals a distinct philosophical shift from Kugler, who generally aligned with Powell’s view that rate hikes or pauses should be calibrated carefully in response to evolving economic conditions.

She had maintained that the impact of Trump’s tariff policies warranted careful scrutiny before any changes to the benchmark interest rate were considered.

Miran, by contrast, has expressed unwavering support for Trump’s tax reduction initiatives and import tariffs. He believes that the combination of these measures will be sufficient to generate robust economic growth, thereby addressing fiscal deficits.

He has also dismissed concerns that the administration’s trade restrictions would lead to a sustained increase in consumer prices.

While many of the central bank’s officials remain cautious about inflationary risks associated with widespread tariff implementation, Miran’s inclusion on the board introduces another voice likely to support monetary easing.

The Federal Reserve’s latest policy decision left the benchmark rate unchanged at 4.3 per cent, a level that has held steady following three consecutive rate cuts late last year.

Yet, the decision was not unanimous; Fed Governors Christopher Waller and Michelle Bowman dissented, both having been appointed during Trump’s first term and both favouring additional easing.

What is Trump’s strategy behind the move?

The White House has made clear that it intends to appoint officials to the Fed who are more amenable to lower interest rates.

According to Trump, reducing rates is essential not only to stimulate consumer borrowing and housing activity but also to manage the cost of servicing the national debt, which now stands at $36 trillion.

Although the Fed does not directly control long-term lending rates such as those attached to mortgages or auto loans, its benchmark rates influence overall market sentiment and liquidity.

Trump’s outspoken discontent with Powell is well-documented. Last week, he went so far as to label the chair “a stubborn MORON” on social media after Powell chose not to endorse additional rate cuts.

The US president has claimed that his own economic instincts — especially on inflation and trade — have proven correct in the past and will again be validated.

Miran echoed this confidence in a televised interview following the release of the July employment figures.

“What we’re seeing now in real time is a repetition once again of this pattern where the president will end up having been proven right,” Miran said on MSNBC. “And the Fed will, with a lag and probably quite too late, eventually catch up to the president’s view.”

What was the market response to Miran’s appointment?

Some analysts remain cautiously optimistic that the Fed’s institutional safeguards will prevent overt politicisation of monetary policy.

Raisah Rasid, a global market strategist at JP Morgan Asset Management, weighed in from Singapore, telling Reuters, “We still maintain that central bank independence is going to be very much intact.”

She stated that decision-making will remain data-dependent and based on macroeconomic fundamentals, even as political rhetoric heats up.

Market reactions to Miran’s appointment were relatively subdued. On Friday, the dollar remained steady but registered a 0.6 per cent decline for the week against a basket of major currencies.

The dollar index stood at 98.1 by day’s end.

Investors continue to focus on upcoming data releases, particularly July’s core consumer price index (CPI), which is expected to show a monthly increase of 0.3 per cent. The results will be critical in determining whether tariff-related price pressures are beginning to materialise.

Despite uncertainty surrounding monetary policy, some of the dollar’s decline has been attributed to investor unease over Trump’s erratic trade positions and broader macroeconomic signals.

The dollar has fallen 9.5 per cent so far in 2025, prompting many investors to seek alternatives. Rasid summarised the prevailing sentiment, stating, “We’re looking for a bending but not breaking sort of scenario (on the dollar).”

What does this mean for the future of the Fed?

The question of who will lead the Federal Reserve after Powell’s term ends in May 2026 remains open. Powell, though stepping down as chair, could continue to serve as a member of the Board of Governors until January 2028.

This complicates Trump’s ability to quickly install a replacement.

However, several potential successors are being closely watched. Christopher Waller, who has already served on the board and supported recent rate cut proposals, has been identified by observers as a leading candidate.

Another possibility is Kevin Warsh, a former Fed governor and vocal critic of Powell, or Kevin Hassett, a senior Trump economic advisor.

One route Trump could take is to nominate one of these individuals to assume the seat Miran now occupies after January 2026.

Alternatively, he could advance Waller or another existing board member to the chairmanship, especially if Miran’s short-term presence serves as a placeholder while a more permanent nominee is vetted.

Marco Casiraghi, a senior economist at Evercore ISI, offered insight into the interim nature of Miran’s appointment. He noted that the White House may have opted for a short-term appointment in order to keep options open for naming the next Fed chair.

“The choice of Miran could be a positive sign for Waller,” Casiraghi told AP, adding that a more strategic nomination may be forthcoming.

Will Miran help further Trump’s agenda?

Miran has long argued in favour of using tariffs not only as a trade-balancing mechanism but also as a tool to induce trading partners to accept changes in currency valuation.

In a November 2024 publication titled A User’s Guide to Restructuring the Global Trading System, Miran examined how trade tools, including tariffs, could be utilised to reduce the US trade deficit and bring about realignment in currency markets.

Some analysts have speculated that his ideas are driving policy in Trump’s second term, culminating in a framework dubbed the “Mar-a-Lago Accord.”

This proposal alludes to the 1985 Plaza Accord, in which major economies agreed to devalue the US dollar to reduce imbalances.

Miran has criticised conventional economic thinking on trade protectionism, arguing that many tariff models fail to account for persistent trade deficits.

He has labelled the broad academic consensus against tariffs as misguided, suggesting that alternative frameworks should guide trade policy decisions.

He has also expressed support for revamping the Federal Reserve’s governance structure. In a March 2024 paper co-authored with Dan Katz, now a senior Treasury official, Miran recommended making it easier for presidents to remove sitting Fed board members.

“The Fed’s current governance has facilitated groupthink that has led to significant monetary-policy errors,” the paper stated.

With inputs from agencies