Trump Nominates Stephen Miller as Fed Governor to Push for Rate Cuts
US President Trump announced on Friday [0808] that he would nominate his economic advisor Stephen Miller as a member of the Federal Reserve Board to fill the vacancy left by the retiring director Kugler. This move is seen as an important step for Trump in shaping the Federal Reserve, as he has consistently urged the central bank to significantly cut interest rates.
According to AFP, Stephen Miller has long defended Trump's economic policies in the media and currently serves as the Chairman of the White House Council of Economic Advisers. The appointment still needs confirmation from the Republican-majority Senate.
Kugler announced her resignation last week, despite her term only having a few months left. In his social platform Truth Social, Trump stated that Miller will serve the remainder of Kugler's term until January 31, 2026, "while we continue to search for a permanent successor."
The Federal Reserve Board consists of seven members, including current Chair Powell, who all have voting rights on U.S. interest rate policy within the 12-member Federal Open Market Committee (FOMC).
Since returning to the White House, Trump has ignored the independence of the Federal Reserve, repeatedly calling for significant reductions in the benchmark interest rate to lower credit costs and stimulate financial markets.
In a statement, Trump said, "Stephen has a Ph.D. in economics from Harvard and performed excellently during my first term, and has been working with me since the start of my second term. His professional expertise in the economy is unmatched and he will do a great job."
Kugler was nominated as a director by former President and Democrat Biden in 2023. Her departure provides an opportunity for Trump to accelerate the replacement of top officials at the Federal Reserve.
Focus on Powell's Successor
Currently, the public is also closely watching who Trump will nominate to replace Powell, whose term will end next spring. Trump said this week that he already has four candidates.
According to Bloomberg, Federal Reserve Governor Christopher Waller is currently the most favored. Waller opposed maintaining the current interest rate level at the July meeting, advocating for rate cuts to prevent a rapid deterioration of the labor market. Two days later, the July employment data confirmed that the labor market worsened more than expected, making Waller's concerns seem prescient.
Analysts point out that Trump's attempt to directly influence monetary policy will raise questions about the independence of his appointees, especially as the U.S. economy faces pressure due to its aggressive protectionist policies.
Original: www.toutiao.com/article/1839932317762571/
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