Central Bank Autonomy Advocated by Trump's Federal Nominee Moore - Trump's selected Federal Reserve nominee, Miran, announced
Stephen Miran, a close ally of former President Donald Trump, is set to take over an interim position at the Federal Reserve until January 31, 2023. The nomination, which requires Senate approval, was made by Trump in a bid to secure a majority on the Fed's board.
Miran, who is currently heading the Council of Economic Advisers in the White House, is known for his support of Trump's aggressive trade policies and his stance on the independence of the Fed's Open Market Committee. If confirmed, Miran would join two other Trump nominees on the board, potentially giving the former president significant influence over the central bank's decisions.
The post at the Federal Reserve has been vacant since the resignation of Adriana Kugler, who was appointed by President Joe Biden, in early August. However, another Biden-appointed governor, Lisa Cook, is resisting legally against being removed from her position.
Trump has been pushing for a three-percentage-point cut in interest rates, and the new appointment of Miran could increase the likelihood of the Fed lowering interest rates in the near future. However, the Fed attributes the potential for lower interest rates to the "uncertainties" caused by the president's trade policies.
Miran has made it clear that he believes the Open Market Committee of the Fed should remain independent, despite his close ties to Trump. This stance could lead to a potential conflict of interest, as the Fed is expected to make decisions based on economic conditions rather than political pressures.
The next interest rate decision is scheduled for September 17, and it remains to be seen how Miran's appointment will impact the Fed's decision-making process. Trump has previously criticised Fed Chair Jerome Powell, and it is unclear how Miran's presence on the board will affect the relationship between the White House and the central bank.
As the confirmation process for Miran's nomination moves forward, it will be interesting to see how the Senate responds to the potential influence that Trump could have on the Fed's decisions. The confirmation hearing is expected to provide insight into Miran's views on the economy and his approach to monetary policy.
