Stephen Miran, an economic adviser to former President Donald Trump, faced tremendous headwinds at a recent National Conservatism conference. That meeting with leading investors was held in the White House’s famous Eisenhower Executive Office Building. The session, which aimed to discuss the administration’s trade policies, quickly turned sour as many attendees expressed dissatisfaction with Miran’s responses and overall preparedness.
Miran’s defense of the administration’s tariff policies was unconvincing, say several audience members. As one of the attendees noted, it was hard for his prepared talking points not to fall apart. This exposed a striking lack of clarity and conviction in his arguments. That feeling was compounded through the testimony of the next three witnesses, most notably Miran’s responses to questions as “hazy at best” and “very unconvincing.” Even some investors noted that Miran was definitely at least a few levels below ready for the deep, technical questions that highly knowledgeable hedge fund managers quickly got into.
The meeting played out with investors clearly more agitated. Their greatest concern was the market uncertainty caused by the Trump administration’s trade protectionism. Miran tried to restate one of the administration’s talking points—that tariffs mostly don’t affect Americans, they only hurt foreign countries. He acknowledged that the tariffs weren’t intended primarily to raise money. This announcement shocked some investors into doubt. He pointed out that tariffs would bring in new revenue. But this was hardly enough to dispel the chill chilling those on the premises.
Past Miran proposals have made investors nervous. Notable examples of this latter sort include proposals to deliberately weaken the dollar and demands that foreign countries pay for U.S. defense in return for our protection. These bold ideas have upended the apple cart and rattled many cage doors among the investment community. They are increasingly asking what is the administration’s long game on the economy.
An attendee of the closed door meeting characterized Miran’s position as a “complete backpedal.” This is a big reversal in tone from the protectionist trade war metered out by the Trump administration. This retreat was foreshadowed by the difficulty with which Miran was forced to defend policies that are now deeply unpopular even among investors in search of a safe haven.
The role of institutional investors in the financial industry Their confidence is key to ensuring continued capital market stability. As they continue to grapple with uncertainty surrounding trade policies and their implications for economic growth, the effectiveness of advisers like Miran becomes paramount.