Trump's New Ally For Lower Rates: Stephen Miran Set For Fed Board Nomination

President Donald Trump said Thursday he will nominate Stephen Miran, current chair of the Council of Economic Advisers, to fill the recently vacated Federal Reserve Board seat left by Adriana Kugler.

If confirmed by the Senate, Miran would serve until Jan. 31, 2026, giving him a short but potentially impactful window to vote on U.S. monetary policy.

From Policy Newcomer To Trump Economic Power Player: Who Is Miran?

Until last year, Miran was a little-known figure in U.S. policymaking.

He built his career in investment firms before catching Trump's attention with a series of pro-tariff policy papers, including a 41-page trade strategy document he dubbed the "Mar-a-Lago Accord."

His rise culminated in late December when Trump tapped him to lead the CEA. A Fed board seat would likely extend his influence from the White House to the central bank's policy decisions.

Miran’s latest public comments suggest he might lean towards a dovish stance on interest rates.

Miran has repeatedly highlighted in recent weeks that inflation has been cooling, despite the presence of tariffs.

On July 29, he wrote, "Inflation has consistently come in below expectations. Time for some updating of models."

Earlier in July, he pointed out that since Trump's current term began, core consumer prices have averaged 2.1% annualized, while headline inflation has been 1.8%.

Those numbers suggest inflation is near the Fed's target, potentially supporting a case for lower rates.

CME FedWatch data indicate a 93% probability of a 25-basis-point cut in September and a 63% chance of a follow-up cut in October. The nomination will head to the Senate Banking Committee for hearings before a full Senate vote.

Market Reactions

Following Trump's nomination of Miran, the U.S. dollar slipped 0.3%, easing from 98.40 to 98. Gold – as tracked by the SPDR Gold Trust (NYSE:GLD) – surged to $3,400 per ounce as traders increased bets on near-term Fed rate cuts.

On Thursday, Trump's economic team was also reported to be considering Fed Governor Christopher Waller — who dissented in July in favor of a rate cut — as likely successor to Jerome Powell when his chairmanship ends in 2026.

The S&P 500 – tracked by the Vanguard S&P 500 ETF (NYSE:VOO) – ended 0.1% lower at 6,340, while the Nasdaq added 0.3% to finish at 23,390.

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Image created using artificial intelligence via Midjourney.