Miran Emphasizes Central Bank Autonomy While Opponents Detect Trump’s Influence
- Stephen Miran, Trump's Fed nominee, faces scrutiny for voting to cut rates 50 bps, challenging Fed independence norms. - Critics argue his dual White House-Fed role risks politicizing monetary policy, contradicting his independence pledges. - Miran's deregulation advocacy and Trump-aligned policies clash with Fed's traditional focus on price stability and employment. - His 2023 critique of Biden-era Fed coordination with Treasury contrasts with current defense of central bank autonomy. - Trump's push for
Stephen Miran, selected by President Donald Trump for the Federal Reserve Board of Governors, has faced intense examination over his perspective on the Fed’s independence and his recent support for a deeper interest rate cut than anticipated. Trump’s decision to nominate Miran, who previously chaired the Council of Economic Advisers, has reignited discussions about the central bank’s independence, with detractors accusing the administration of injecting politics into monetary policy. After being confirmed by the Senate on September 19, 2025, Miran succeeded Governor Adriana Kugler and quickly attracted attention by opposing the consensus at the Fed’s September meeting, advocating for a 50-basis-point cut rather than the 25-basis-point reduction favored by most members title1 [ 1 ].
Miran’s push for more substantial rate reductions is consistent with his longstanding criticism of what he sees as the Fed’s compromised independence. In a 2023 City Journal piece, he accused the Biden-era Federal Reserve of acting as an “extension of the U.S. Treasury,” pointing to shared personnel and the central bank’s slow reaction to post-pandemic inflation. He argued that under Powell’s leadership, the Fed’s delayed tightening of monetary policy worsened inflation, which climbed to 8.5% before interest rates were raised title1 [ 1 ]. This position stands in contrast to his more recent defense of the Fed’s autonomy, where he told CNBC, “The Federal Open Market Committee operates independently and faces a tremendous responsibility, and I am committed to safeguarding that independence” title2 [ 2 ].
The apparent contradiction between Miran’s public assurances and his policy choices has sparked debate about his alignment with Trump’s economic priorities. At his inaugural Fed meeting, Miran was the only governor to support a larger rate cut, forecasting a terminal rate for 2025 of 2.75%–3%, notably below the 3.5%–3.75% range projected by other officials title2 [ 2 ]. He justified his position by referencing his assessment of disinflationary forces, including Trump’s tariffs and deregulation, asserting these actions “have contributed to lower prices” title2 [ 2 ]. Nonetheless, Fed Chair Jerome Powell cautioned that tariffs could still fuel inflation, stressing the importance of monitoring to ensure temporary price increases do not become entrenched title2 [ 2 ].
Miran’s simultaneous roles as a White House appointee and Fed governor have also raised doubts. Although he has taken leave from the Council of Economic Advisers, he continues as an unpaid federal worker, further complicating perceptions of his independence. In remarks prepared for the Senate Banking Committee, Miran vowed to make decisions based on “my evaluation of the macroeconomy and what best serves its long-term health,” yet Democratic senators questioned whether he could truly remain unbiased given his close connections to the administration title3 [ 3 ]. Gregory Daco, an economist at EY-Parthenon, cautioned that the “increased political friction” surrounding the Fed’s actions could damage its reputation and ability to respond flexibly title2 [ 2 ].
The impact of Miran’s appointment goes beyond monetary policy. Trump’s efforts to appoint loyalists to the Fed board have heightened worries about the institution’s independence, a key element of its authority since the 1970s. Miran’s support for deregulation and protectionist trade measures further complicates his position at an agency traditionally focused on price stability and employment. While he reiterated his dedication to the Fed’s dual mandate during his confirmation, his previous writings and recent actions reveal a complex perspective on central bank independence—one that both challenges established norms and navigates the political realities of his role title1 [ 1 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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