Pending Senate confirmation, Miran will hold the position while the White House searches for a permanent replacement. Last week, Federal Reserve Board Governor Adriana Kugler resigned to return to Georgetown University. Her term was set to expire in 1/2026.
The Federal Reserve Board of Governors, the Fed's highest governing body, consists of seven members nominated by the president and confirmed by the Senate. This group is responsible for setting monetary policy, banking supervision, and national financial stability.
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Council of Economic Advisers Chair Stephen Miran. Photo: Reuters |
Council of Economic Advisers Chair Stephen Miran. Photo: Reuters
On 7/8, Trump stated that the White House is actively seeking a permanent candidate for the position. He is also considering candidates for Fed Chair, as Jerome Powell's term ends in 5/2026.
Trump's efforts to pressure the Fed into lowering interest rates have been unsuccessful. Nominating Miran, even on an interim basis, could provide a more direct channel to influence monetary policy and exert greater control over the Fed.
Miran has long advocated for a comprehensive overhaul of the Fed's governance. In a study he co-authored last year, he proposed increasing presidential control over the Fed's Board of Governors, including shortening members' terms. He also sought to end the practice of officials rotating between the Fed and government positions and to nationalize the Fed's 12 regional banks.
However, Trump's nomination requires Senate approval. This process involves a hearing before the Senate Banking Committee, a committee vote to advance the nomination, and a series of full Senate votes. Democrats could potentially delay the confirmation process.
Senator Elizabeth Warren, the highest-ranking Democrat on the committee, stated she will have "tough questions at the hearing about whether Miran will serve the American people as an independent voice at the Fed, or whether he will serve Donald Trump." The Senate is scheduled to reconvene next month.
The Fed has four remaining policy meetings this year. In its July meeting, it held the benchmark interest rate steady at 4.25%-4.50%. Powell noted that inflation remains high and expressed concern that Trump's import tariffs could exacerbate the situation.
Ha Thu (Reuters)
