Trump Names White House Economic Committee Chairman as Federal Reserve Governor | Federal Reserve

Donald Trump He will nominate top economic adviser for the The Federal Reserve The board lasted for four months, temporarily filling the vacancy while continuing to look for long-term appointments.

Trump said he appointed Stephen Miran, chairman of the White House Economic Advisory Council, who filled the evacuation of Biden-appointed Adriana Kugler, who resigned as governor on Friday. Miran, if approved by the Senate, will serve until January 31, 2026.

Appointment is Trump’s first chance to control the Fed, the few remaining Independent federal agencies. Trump ruthlessly criticizes the current chairman, Jerome Powellto maintain short-term interest rate Not changing, last week called him a “stubborn idiot” on social media.

Miran has been a strong defender of Trump’s tax cuts and tariff rate hikes, believing that this combination will generate enough economic growth to reduce budget deficits. He also raised the risk of higher inflation from Trump tariffs, a major source of concern for Powell.

Miran’s choices may intensify concerns about the Fed’s political influence, which traditionally is isolated from daily politics. The Fed’s independence is often seen as ensuring it can take tough measures to combat inflation, such as raising interest rates, which politicians may be reluctant to take.

Federal Reserve governor votes on all central bank interest rate decisions and their financial regulatory policies.

If approved, Milan’s nomination will increase a near-determined vote in favor of lower interest rates. Kugler responded to Powell’s view that the Fed should keep interest rates unchanged and further evaluate the impact of tariffs on the economy before taking any action.

Last week, FED officials kept their critical rate unchanged at 4.3% in a recent meeting, and it has stood up after lowering three innings late last year. However, two Federal Reserve Governors Christopher Waller and Michelle Bowman did not object to the decision. Both were appointed by Trump in his first term.

Nevertheless, even among the 12 Fed officials who voted on interest rate policies in Miran, board member, many are still worried Over the coming months, Trump’s widespread tariffs could drive higher inflation.

After releasing its July work report last Friday, Milan criticized the Fed’s chairman for not lowering the benchmark interest rate, saying Trump had been proven to be correct in his first term and would become inflation again. The president puts pressure on Powell to believe his tariffs will not exacerbate higher inflationary pressures.

“What we’re seeing now in real time is the repetition of this pattern, and the president will eventually prove to be correct,” Milan said on MSNBC. “The Fed will have a lag, which may be too late and eventually catch up with the president’s point of view.”