Why Trump's Federal Reserve pick is raising alarm over central bank's independence
top economic adviser to the Federal Reserve Board could strengthen the White House's influence over the central bank and deepen concerns over its independence, analysts said.
Stephen Miran, chairman of the Trump administration's Council of Economic Advisers and an architect of its tariff policy, will be nominated to temporarily fill a vacant seat on the Federal Reserve's board of governors, the US president announced Thursday on social media.
Analysts warned the move could put further pressure on Fed chairman
Jerome Powell and increase the chances of an interest rate cut in September – a shift pushed by Trump that could impact global markets.
The nomination, now subject to Senate approval, came amid an ongoing tug-of-war between Trump and Powell over interest rates. Miran has previously proposed sweeping reforms to the central bank.
'He [Miran] could be a shadow over Powell,' said Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at French investment bank Natixis, referring to the Trump administration official's previous criticism of Powell over the Fed's decision to maintain interest rates.
'He's not only aiming to be nominated. He's aiming to change the charter of the Fed. So that's why this is a big issue,' she said.
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