US President Donald Trump announced on Thursday that he will nominate top economic adviser Stephen Miran to temporarily serve on the Federal Reserve Board of Governors as he pushes for more control over the central bank.
If confirmed by the US Senate, Mr Miran, chairman of the White House’s Council of Economic Advisers, would fill the seat vacated by Adriana Kugler, who is due to step down as Fed governor on Friday. Her term expires on January 31, 2026.
“In the meantime, we will continue to search for a permanent replacement,” Mr Trump wrote on the Truth Social media platform, suggesting he could nominate another person to serve a full 14-year term.
Ms Kugler's surprise resignation last week opened the path for Mr Trump to exert power over the Federal Reserve, the independence of which has been tested amid the President's repeated calls for lower interest rates.
Ms Kugler was absent and did not vote when the Fed kept its target range for interest rates steady at 4.25 to 4.50 per cent last week. She did not provide a reason for her resignation.
The Federal Reserve referred to the White House when asked for comment. The White House referred The National to Mr Trump's Truth Social post when asked for a statement.
Mr Miran has been critical of the Federal Reserve in the past, arguing for reforms to the US central bank in a March 2024 paper.
“The Federal Reserve’s record in recent years raises questions about whether it has been operating in line with the best practices of central bank independence,” he wrote along with Daniel Katz, who now works at the Treasury Department.
Mr Miran is also known for co-developing the “Mar-a-Lago Accord”, a playbook to devalue the dollar while preserving its status as the world's reserve currency.
His nomination to the Federal Reserve Board comes as Fed chairman Jerome Powell faces increasing pressure from the Trump administration to lower interest rates. Mr Trump has relentlessly attacked Mr Powell in recent months, even visiting the central bank's headquarters where renovation costs have become a new target for the White House.
It also comes as speculation increases over who will replace Mr Powell, whose term as chairman expires in May 2026. On Thursday, Bloomberg reported Fed Governor Christopher Waller has emerged as a top choice to succeed him.
Mr Waller was one of two Fed governors to dissent in last week's decision to keep rates unchanged, instead favouring a cut of 25 basis points.
He based his reasoning on a forward-looking view that tariffs will lead to a one-off increase in prices and that current data shows the labour market is not as strong as it appears.
“I believe that the wait-and-see approach is overly cautious and, in my opinion, does not properly balance the risks to the outlook and could lead to policy falling behind the curve,” Mr Waller said in a statement last week.
“When labour markets turn, they often turn fast. If we find ourselves needing to support the economy, waiting may unduly delay moving towards appropriate policy.”
Mr Powell has not indicated if he intends to serve out the remainder of his term on the central bank, which expires in 2028, after his term as chairman ends.
