Trump nominates Milani to serve as a Federal Reserve governor, pledging to uphold the central bank's independence and dual mandate

According to the Zhitong Finance APP, Stephen Milan, nominated by President Donald Trump as a candidate for the Federal Reserve Board, clearly stated in his opening remarks submitted in advance to the Senate Banking Committee that he would fully maintain the independence of the Federal Reserve and its dual mandate of "price stability and maximum employment." He emphasized, "In my view, the core responsibility of the central bank is to prevent economic downturns and hyperinflation, and the independence of monetary policy is the key element to its success."

The Senate Banking Committee will hold a hearing on this nomination on Thursday morning. Milan's nomination aims to fill the remaining term left by Federal Reserve Governor Adriana Kugler due to an unexpected vacancy, which will expire on January 31, 2026. If confirmed, he will directly complete Kugler's remaining term rather than becoming a permanent governor.

Currently, the Federal Reserve is set to hold an interest rate decision meeting on September 17, and Milan's appointment coincides with Trump's attempt to install a "shadow chairman" within the Federal Reserve, with his role positioned to provide oversight on the board. Trump has previously made it clear that the nominee for Kugler's seat will serve as a temporary replacement for Powell.

In terms of policy stance, Trump has long advocated for significantly lowering borrowing costs, while Milan has previously criticized the Federal Reserve's aggressive stimulus measures during the COVID-19 pandemic. In response to his nomination, he pledged, "If confirmed, I will strictly perform my duties based on congressional authorization, and all opinions and decisions will be based on macroeconomic analysis, adhering to the principle of long-term management optimization." At the same time, he emphasized the significant responsibility of the Federal Open Market Committee as an independent entity, stating that he would be committed to maintaining its independence and effectively serving the American people.

However, Milan also expressed oversight concerns regarding the Federal Reserve's activities beyond its dual mandate, particularly concerning the central bank's balance sheet issues. In his statement, he pointed out, "The Federal Reserve oversees the world's most important financial institutions, setting differentiated monetary prices for borrowers, including other central banks. The final composition plan of its balance sheet remains a core issue that is still unresolved."