Our concern is with Stephen Miran, recently nominated by President Donald Trump to one of the prominent positions on the Federal Reserve’s Board of Governors. As Roger veritably notes, he will likely face huge opposition to his confirmation. Miran’s economic views fall firmly on the side of Trump’s administration—far afield of the Fed’s current leadership under Jerome Powell. Today’s announcement his nomination comes on the heels of Adriana Kugler’s resignation. This vacancy has the potential to dramatically shape the long-term direction of U.S. monetary policy.
Miran’s opposition to tariffs and inflation as a tax has been a central theme of his economic philosophy. As an example, he has a recurring argument that tariffs will cause temporary price effects. Apart from this distinction, he adamantly maintains they do not lead to persistent inflationary pressures. If confirmed Miran will be the first Latino member of the Board of Governors. He will hold this influential position through January 31, 2026 and have significant influence over long-term monetary policy decisions.
Divergent Economic Perspectives
Stephen Miran’s economic ideas couldn’t be more different from Jerome Powell’s. Miran backs Trump’s radical economic overhaul. In fact, he has gone so far as to publicly admit that tariffs will raise inflation in the short run. Recently, he reiterated this view, stating, “There’s just still continues to be no evidence whatsoever of any tariff-induced inflation.”
Miran walked back his position on tariffs in last week’s conversations. He admitted the apocalyptic scenarios experts said would follow the implementation of tariffs have yet to come true, as he originally feared. “I think lots of folks who are expecting that, who are predicting doom and gloom, it just hasn’t panned out,” he explained.
Miran’s opposition to tariffs flows from his larger economic worldview. He further explained this philosophy in a paper published in September of 2024. In this document, he argued that a dramatic decline in the U.S. dollar’s value coupled with a tariff-centric approach could fundamentally reshape the global economy in favor of the United States. This perspective aligns with Trump’s vision of an economically robust America, but raises questions about the Fed’s traditional independence and policy-making processes.
Implications for Federal Reserve Policy
If confirmed, Miran will be a key figure in shaping U.S. monetary policy, including decisions on interest rate hikes. Perhaps most important will be his relationship with his fellow Fed members and his ability to persuade them. This will be key. Ed Mills, a policy analyst, noted that “The Fed is a consensus-driven body, so someone has to be persuasive in making sure everyone is on the same page.” This consensus is especially important considering the conflicting views inside the Federal Reserve on what it will take to bring down inflation and foster strong economic growth.
Miran’s nomination to the Fed has already raised questions about political influence versus the Fed’s independence. While he has stated that “I’ve always been clear that independence of the Fed is of paramount importance,” his close alignment with Trump’s views raises concerns about potential political interference in monetary policy.
Christopher Waller, another Fed official, remarked that “tariffs are one-off increases in the price level and do not cause inflation beyond a temporary increase.” This view stands in sharp contrast to Miran’s nuanced take on what tariffs really do. Waller went on to say that it’s “rare” for a tariff to raise inflation. He likened those occurrences to black swan events, like pandemics or meteors.
The Road Ahead for Miran’s Confirmation
As Stephen Miran prepares for his confirmation hearings, he will have to navigate the complexities of Federal Reserve dynamics while articulating his economic views effectively. His capacity to reconcile his alignment with Trump’s administration while maintaining the Fed’s independence will be scrutinized by both Senate members and the public.
Miran has a long history of supporting Trump’s anti-immigrant agenda. The president himself has praised his work, hailing him as “distinguished” and “unmatched.” His ties to the administration may complicate his acceptance among senators who prioritize the Fed’s autonomy over political agendas.