Trump Nominates Stephen Miran to Fill Fed Seat, Pushing for Lower Rates

President Donald Trump announced on Thursday that he will nominate Stephen Miran, the chair of the White House’s Council of Economic Advisers, to temporarily fill a vacant seat on the Federal Reserve’s board of governors. The seat was previously held by Adriana Kugler, a Biden appointee who is stepping down. If confirmed by the Senate, Miran will serve until January 31, 2026, and is expected to support keeping interest rates low. This is the first step in Trump’s broader effort to reshape the Fed’s leadership and align its policies with his economic agenda [1].

Miran has long defended Trump’s economic policies, including his tax cuts and tariff increases, arguing that these measures will drive economic growth and reduce budget deficits. He has also downplayed concerns that Trump’s tariffs could lead to higher inflation. His nomination is seen as a near-certain vote in favor of lower interest rates, aligning with Trump’s repeated calls for the Federal Reserve to reduce borrowing costs. The president has argued that lower rates will help reduce the government’s debt burden and stimulate a sluggish housing market. However, the Fed does not directly control long-term rates for mortgages or auto loans [2].

The Fed currently maintains its key interest rate at 4.3%, a level unchanged since last December. Two of the central bank’s governors — Christopher Waller and Michelle Bowman, both appointed by Trump — dissented from the recent decision to keep rates steady, highlighting internal divisions. Miran’s likely support for lower rates means the board will have a stronger voice for rate cuts, but the decision ultimately depends on the broader 12-member voting body. Some Fed officials remain cautious about the inflationary risks posed by Trump’s tariff policies [3].

Trump has indicated he will continue the search for a more permanent replacement for Miran’s position and may also seek to appoint the next Fed chair when current Chair Jerome Powell’s term ends in May 2026. Potential candidates include former Fed governor Kevin Warsh and top economic adviser Kevin Hassett. Another possibility is the promotion of existing board member Christopher Waller to the chair position. Analysts suggest that Trump’s decision to nominate Miran rather than a potential chair may signal support for Waller’s eventual ascension [4].

Miran has previously advocated for unconventional economic strategies, including measures to devalue the U.S. dollar to improve trade balances. In a 2024 paper, he argued that the Fed’s governance structure encourages groupthink and has led to policy errors. The paper, co-authored with Dan Katz, a current Treasury Department official, proposed reforms to make it easier for a president to replace Fed officials. These views align with Trump’s push for greater executive control over monetary policy [5].

Trump’s choice of Miran reflects his broader strategy of reshaping monetary policy to align with his economic vision, which emphasizes reduced borrowing costs and expanded trade protectionism. However, it also raises questions about the Fed’s ability to maintain its independent stance in responding to inflationary pressures. With Miran temporarily on the board, the Fed’s next moves will be closely watched to see whether political influence will begin to shape its traditionally data-driven policy decisions [6].

Sources:

[1] Fortune (https://fortune.com/2025/08/08/trump-names-stephen-miran-federal-reserve/)

[2] New York Times (https://www.nytimes.com/2025/08/08/business/economy/fed-miran-rates-powell-trump.html)

[3] NBC (https://www.nbcnews.com/business/economy/trump-announces-new-fed-governor-who-what-to-know-rcna223268)

[4] MarketWatch (https://www.marketwatch.com/story/trump-nominee-miran-could-have-a-surprising-effect-on-the-fed-giving-officials-more-freedom-to-dissent-eccbb5fe)

[5] Times of India (https://timesofindia.indiatimes.com/business/international-business/will-do-an-outstanding-job-trump-nominates-stephen-miran-to-federal-reserve-board-powells-role-under-scrutiny/articleshow/123178358.cms)

[6] ABC News (https://abcnews.go.com/US/wireStory/trump-nominate-top-economic-aide-stephen-miran-federal-124461656)