Trump nominates Stephen Moore to serve as a Federal Reserve governor, with a term ending in late January next year

U.S. President Donald Trump announced that he has chosen Stephen Miran, Chairman of the Council of Economic Advisers, to serve as a member of the Federal Reserve Board.

On Thursday, Trump announced the nomination via social media, and Miran's appointment requires approval from the U.S. Senate. Trump stated:

Miran has been working with me since the beginning of my second term, and his expertise in economics is unparalleled—he will do an excellent job.

It is noteworthy that this nomination is only to fill the term of Federal Reserve Board member Adriana Kugler, which is set to expire in January next year. Trump stated:

Meanwhile, we will continue to search for a permanent replacement.

Stephen Miran previously served as a senior economic advisor at the U.S. Department of the Treasury during Trump's first presidential term and holds a Ph.D. in economics from Harvard University. The much-discussed "Mar-a-Lago Agreement" titled "A User's Guide to Restructuring the Global Trade System" was authored by him.

Following the announcement, the market reacted swiftly. The Bloomberg Dollar Spot Index erased its intraday gains.

Wallstreetcn previously reported that on August 1, the Federal Reserve issued a statement saying that Federal Reserve Board member Kugler would resign from her position and officially step down on the 8th of this month. Kugler's term was originally set to end in January next year, and her early departure allows President Trump to make a new round of personnel appointments to the Federal Reserve Board a few months in advance.

"Federal Reserve Critic" Miran

Miran has been critical of the Federal Reserve's performance in recent years, advocating for fundamental reforms of the institution.

In a 24-page reform plan co-authored with current Treasury Chief of Staff Dan Katz in March 2024, Miran attributed the Federal Reserve's policy missteps to "groupthink."

The report of the plan pointed out that the Federal Reserve has extended its powers into political areas beyond its statutory scope. Miran and Katz wrote in the document:

The Federal Reserve's record in recent years has raised questions about whether its operations align with best practices for central bank independence.

One of the most notable proposals in Miran's reform plan is to completely separate the formulation of monetary policy from banking regulation and oversight functions. This means stripping the Federal Reserve Board of its power over bank regulation, and this significant adjustment would require legislative action to implement.

According to Miran and Katz,

The purpose of such reforms is to avoid unnecessarily contaminating the process of formulating monetary policy