President Trump announced Thursday his nomination of Stephen Miran, chair of the Council of Economic Advisers (CEA), to fill a soon-to-be-vacant seat on the Federal Reserve Board of Governors. Miran will replace Adriana Kugler, who steps down Friday, with his term running through January 31, 2026.
“It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026,” Trump posted on Truth Social. “In the meantime, we will continue to search for a permanent replacement. 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. Congratulations Stephen!”
Miran previously advised the Treasury Department on economic policy during Steven Mnuchin’s tenure and was a senior strategist at Hudson Bay Capital Management. He is credited as a key architect of Trump’s tariff policy and economic agenda and linked to the so-called Mar-a-Lago currency accord based on his work in the private sector.
Kugler’s early resignation, just months before her term’s scheduled end in January 2026, was unexpected. Having served since September 2023, she plans to return to Georgetown University as a professor this fall.
Miran’s appointment adds another Trump administration official to the Fed and likely brings a voice favoring interest rate cuts at the Fed’s September meeting. Last week, governors Chris Waller and Michelle Bowman voted against maintaining rates in the current 4.25%-4.50% range.
Paul Ashworth, chief North America economist at Capital Economics, called the nomination a “welcome surprise,” adding Miran is “a good pick” who should be confirmed easily. With the Senate on August recess until September 9, however, confirmation ahead of the Fed’s September 16-17 meeting is unlikely.
Senate Banking Committee Chair Tim Scott praised Miran as “an accomplished economist” and expressed eagerness to “quickly consider his nomination.”
Though Miran’s term is short, investors will watch for signals on Trump’s eventual choice for Fed Chair and monetary policy direction. “By selecting Miran, Trump has made a stop-gap appointment and given himself until January to make the main call,” Evercore ISI analysts Marco Casiraghi and Gang Lyu noted. “This way Trump did not tie his hands, keeping his options open regarding the choice of the new Fed governor and especially the new Fed chair.”
Trump must nominate a candidate for a full 14-year term once Miran’s term ends. If Miran performs well, renomination is possible.
The president has reportedly narrowed his choice for Fed Chair to three: governors Chris Waller, former Fed governor Kevin Warsh, and National Economic Council director Kevin Hassett.
Waller is emerging as a favorite among Trump’s advisers. Warsh, who served on the Fed from 2006 to 2011 and was a key liaison during the 2008 financial crisis, has been critical of the Fed’s current direction and called for institutional reform.
Warsh argued on Fox Business that one-time tariff-related inflation should be overlooked and criticized Fed headquarters renovation costs as evidence the Fed “has lost its way.”
Hassett, who advised Trump in his first administration, favors immediate rate cuts and has accused the Fed of politicizing its decisions. He advocates a return to the “Alan Greenspan approach” of strong chair leadership and consensus-building.
“The board is going to have to go back to the kind of … Alan Greenspan approach of driving consensus, having healthy debate,” Hassett said.
Meanwhile, the White House hopes Jerome Powell will step down when his chairmanship ends in May 2026, freeing another seat Trump could fill. Powell’s governor term expires in 2028, and he has yet to announce his plans.
If Powell remains, the upcoming vacancy could be Trump’s sole chance to appoint a new Fed governor and influence future Fed leadership.
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