Trump names chair of White House economic council as Federal Reserve governor | Federal Reserve
Donald Trump said on Thursday that he would nominate a senior economic advisor to the Federal Reserve Board of Directors for four months and fill the gap temporarily while he was looking for a longer -term appointment.
Trump said that Stephen Miran, President of the White House Economic Consultants Council, chose to fill a seat evacuated by Adriana Kugler, who resigned as governor on Friday. Miran will serve until 31 January 2026 if approved by the Senate.
The appointment is the opportunity to make more control on the FED, one of Trump’s remaining several independent federal institutions. Trump mercilessly criticized the current chair Jerome Powell for holding short -term interest rates unchanged and called a “stubborn moron on social media last week.
Miran, arguing that the combination would provide sufficient economic growth to reduce budget deficiencies, Trump’s income tax deductions and tariff increases became a strong advocate. It also reduced Trump’s risk of producing higher inflation, an important concern for Powell.
Miran’s choice can increase concerns about the political impact on the Fed, which is traditionally isolated from daily politics. Feeding independence is often seen as a key to ensure that it can take difficult steps to combat inflation, such as raising interest rates that politicians may not want to throw.
Federal reserve governors vote for all interest rate decisions of the Central Bank as well as financial regulatory policies.
If Miran’s nomination is approved, he will add a definite vote to support lower interest rates. Kugler reiterated his opinion that Powell should further evaluate the impact of tariffs on the economy before the Fed’s proportions remained unchanged and made any moves.
At the latest meeting of last week, the FED officials changed their key rates to 4.3%and stopped after three ratio deductions last year. However, the governors who were opposed to this decision – Christopher Waller and Michelle Bowman -. Both were appointed by Trump in the first period.
Nevertheless, even on the Miran board, most of the 12 -fed officials who vote for the interest rate policy continue to be worried Trump’s comprehensive tariffs can increase inflation further in the coming months.
After the July Jobs report was released last Friday, Miran criticized for not interrupting the comparative interest rates and said that Trump was proven to be true in inflation in the first period and said it would be again. The President has pressure on Powell to reduce short -term interest rates, believing that tariffs would not cause higher inflationary pressures.
Miran said, “What we see in real time now is that this model will prove that the president will prove to be right once again,” Miran said. “And the Fed is a delay and probably too late, finally will catch the president’s opinion.”
