Stephen Miran, President Donald Trump’s nominee for the vacant Federal Reserve Governor role, has pledged to uphold the central bank’s independence and dual mandate of price stability and maximum employment. Miran, who is currently the chairman of the Council of Economic Advisers, made the remarks in his opening statement to the Senate Banking Committee ahead of his confirmation hearing. He emphasized the importance of preventing depressions and hyperinflations, and noted that independence of monetary policy is crucial for the central bank’s success.
Miran’s appointment comes amid speculation that Trump would seek to nominate a “shadow chair” to act as a gadfly on the board. However, Trump has stated that Miran’s nomination is temporary, and that he will serve out the remaining term of Fed Governor Adriana Kugler, which expires on January 31, 2026. Miran has been critical of the Fed’s aggressive stimulus during the Covid crisis, but has pledged to carry out his role in accordance with the mandates assigned by Congress.
In his statement, Miran also raised questions about oversight of the Fed’s activities outside of its dual mandate, including its balance sheet. He noted that the Fed oversees important global financial institutions and sets prices for borrowers and lenders, and that the composition of its balance sheet is an open-ended question. Miran’s confirmation hearing is scheduled to take place on Thursday, and his appointment could have significant implications for the Fed’s decision on interest rates, which is set to take place on September 17.
Miran’s pledge to uphold the Fed’s independence is notable, given Trump’s history of criticizing the central bank and its chairman, Jerome Powell. Trump has pushed for sharply lower borrowing costs, and Miran’s appointment could be seen as an attempt to influence the Fed’s decision-making process. However, Miran’s statement suggests that he is committed to carrying out his role in a non-partisan manner, and to prioritizing the long-term health of the economy.
Overall, Miran’s nomination and confirmation hearing are likely to be closely watched, given the significant implications for the Fed and the economy. His pledge to uphold the Fed’s independence and dual mandate is a positive sign, but his criticism of the Fed’s past actions and his questions about oversight of its activities outside of its mandate suggest that his appointment could also be controversial.