Trump Names Stephen Miran for Fed Board – Forex Market on Alert
President Donald Trump has nominated Stephen Miran, the current chair of the White House’s Council of Economic Advisers, to fill a vacancy on the Federal Reserve Board left by Adriana Kugler, who resigned earlier than expected. Miran’s term would last until January 2026, while the White House searches for someone to replace Jerome Powell as Fed Chair.
Miran is known for supporting Trump’s call for lower interest rates. In 2024, he co-wrote a paper suggesting a major change to how the Federal Reserve operates. The paper called for reducing the Fed’s independence, giving more control to the President and Congress over monetary policy decisions.
This idea has raised concerns among analysts. Economists at JPMorgan even warned that Miran’s appointment could be an “existential threat” to the central bank’s independence. They believe it signals a possible plan to amend the Federal Reserve Act and reduce the Fed’s authority in setting policy.
If confirmed, Miran would join two other Trump-appointed governors at the Fed, increasing the influence of the Trump administration on monetary decisions. This has fueled speculation in the forex market that the Fed may lean toward interest rate cuts, which could weaken the US dollar. A softer dollar often boosts risk assets and supports currencies like the euro, pound, and Australian dollar.
For forex traders, Miran’s appointment adds uncertainty, as markets now must weigh political influence on the Fed against economic data.
Impact:
Forex markets might expect more rate cut signals and a weaker US dollar. Traders could see higher volatility in major currency pairs if Fed independence comes under pressure.