U.S. President Donald Trump has announced his new nominee for a seat on the Federal Reserve Board of Governors to see out the rest of Adriana Kugler’s term after she resigned last week.
Trump’s nominee was Stephen Miran, who is currently chair of the economic advisors, as he will serve out Kugler’s term, which expires on 31 January 2026.
“In the meantime, we will continue to search for a permanent replacement,” Trump said, indicating Miran could be a temporary replacement until the White House finds someone to see out the full 14-year term.
“Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration.
“He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job.”
As well, the Kugler vacancy, Fed Chair Jerome Powell’s term expires in May, giving Trump the potential to choose a new chair.
It was thought Trump was going to use the Kugler vacancy to nominate a “shadow chair”; however, Trump said the nominee for Kugler’s seat would be temporary rather than a permanent replacement for Powell.
Evercore ISI senior economist Marco Casiraghi said Miran could be a “stop-gap appointment”, giving Trump until January to make a call on a permanent replacement for Powell.
“Trump could decide to reappoint Miran or choose someone else … giving that person a clear mandate to become the next chair,” he said.
“Given his support of Trump’s policies, we think Miran would likely continue to act as a Trump loyalist once on the Fed board, calling for lower rates and voting for rate cuts in FOMC meetings. But markets will remain squarely focused on who will become the new Fed chair.”
This comes as Trump and current Fed Chair Powell are at odds, as Trump advocates for lower interest rates.
