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Yahoo
3 days ago
- Business
- Yahoo
Trump nominates CEA chair Stephen Miran to Federal Reserve board
President Trump said Thursday that he would nominate Stephen Miran, current chair of the president's Council of Economic Advisers, to the Federal Reserve Board of Governors. Miran will replace outgoing governor Adriana Kugler, who is set to step down on Friday. Miran's term will run until Jan. 31, 2026. "It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," Trump said in a post on Truth Social. "In the meantime, we will continue to search for a permanent replacement," Trump continued. "Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!" Miran served as an adviser of economic policy for the Treasury Department during Steven Mnuchin's tenure as Treasury Secretary during Trump's first administration. He was also a senior strategist at Hudson Bay Capital Management. Miran is credited as being one of the authors of Trump's tariff policy and a key architect of his economic agenda. He has also been linked with the push for a so-called Mar-a-Lago currency accord, based on a paper he wrote laying out various strategies for rebalancing US trade while working in the private sector. Kugler unexpectedly announced last week that she would step down from the Fed's Board of Governors, just under six months before her term was set to expire on Jan. 31, 2026. Kugler, who has served as a Fed governor since Sept. 13, 2023, will return to Georgetown University as a professor this fall. Miran's appointment will add not only a Trump administration official to the Fed board, but also likely another member who is in favor of the central bank cutting interest rates as soon as its September policy meeting. Last week, Fed governors Chris Waller and Michelle Bowman both voted against the Fed's decision to keep interest rates unchanged in a range of 4.25%-4.50%. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments Paul Ashworth, chief North America economist for Capital Economics, said the president's decision to nominate Miran is a "welcome surprise," noting that while he doesn't always agree with Miran, he is a "good pick" who should easily be confirmed by the Senate. Miran's confirmation is pending Senate approval, but with lawmakers currently on August recess, it's unclear how long that could take. The nomination hearing will be a priority for the Senate Banking Committee, but lawmakers aren't due back in session until Sept. 9, which is just one week before the Fed's policy meeting on Sept. 16 and 17. The tight timeline makes it unlikely Miran could be confirmed and sworn in by the meeting. Senator Tim Scott, chair of the Senate Banking Committee, called Miran "an accomplished economist" and said that he "looks forward to quickly considering his nomination in the Senate Banking Committee." While Miran is set to be on the Fed's board for only a few months, investors will be looking for any clues about what his nomination means for the president's eventual nomination for the next Fed Chair and his intentions for influencing monetary policy. 'By selecting Miran, Trump has made a stop-gap appointment and given himself until January to make the main call,' said Evercore ISI analysts Marco Casiraghi and Gang Lyu in a note to clients. 'This way Trump did not tie his hands, keeping his options open regarding the choice of the new Fed governor and especially the new Fed chair.' President Trump will need to nominate someone to the Fed Board of Governors for a full 14-year term once the short-term Fed Governor position's term is up on Jan. 31 next year. If Miran performs to Trump's liking, it's possible he could be renominated to a full 14-year term. The president said he's narrowed down his choice for the next Fed Chair to three individuals. Bloomberg reported earlier on Thursday that Waller is emerging as the favorite to replace Jerome Powell as Fed chair among Trump's advisers. The president said he also favors former Fed governor Kevin Warsh and current director of the president's National Economic Council Kevin Hassett. Warsh has experience navigating the central bank, as he served as a Fed governor from 2006 until 2011 and acted as former Fed Chair Ben Bernanke's liaison to Wall Street during the chaos of the 2008 financial crisis. Warsh is also a known figure to Trump, who interviewed him for the Fed chair post eight years ago before deciding to nominate Powell. Warsh has been critical of the Fed of late, saying that the central bank needs a regime change and that it's not just about the chairman, but a range of people. He's argued on Fox Business last month that the costs involved in renovating the Fed's headquarters represent one of several examples of how the Fed "has lost its way" and that the American people "need a reformer to fix" the institution and rebuild its credibility. When it comes to policy, Warsh has suggested that the Fed could look past inflation related to tariffs because it'd be a one-time increase. Hassett, meanwhile, already has a close relationship with Trump, given that he advises the president on economic policy and served in the first Trump administration. Hassett has said there's no reason why the Fed shouldn't cut rates now, something the president has repeatedly hammered the central bank to do. Read more: How jobs, inflation, and the Fed are all related He has indicated he would accept the job of Fed chair if Trump chooses him. This week, he accused the central bank of injecting politics into its decision making during an appearance on Fox Business. Similar to Warsh, Hassett suggested Fed leadership has lost its way, noting that 'the job of the leadership is to drive a nonpartisan consensus of the board, and that's not what we're seeing right now.' He said the Fed board 'is going to have to change,' and that he favors going back to the era of Alan Greenspan— where the Fed chair had a large influence over policy decisions. 'The board is going to have to go back to the kind of … Alan Greenspan approach of driving consensus, having healthy debate,' said Hassett. The White House also hopes that Powell will decide to leave the Fed Board of Governors when his chairmanship is up next year in May 2026. That would open up a second seat that Trump can fill. Powell has not yet said whether he intends to do that; his term as a Fed governor is not up until 2028. If Powell does not vacate his seat, the open governor's seat could be the only opportunity the president has to put his stamp on a fresh face for Fed Chair. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Trump nominates CEA chair Stephen Miran to Federal Reserve Board
President Trump said Thursday that he would nominate Stephen Miran, current chair of the president's Council of Economic Advisers, to the Federal Reserve Board of Governors. Miran will replace outgoing governor Adriana Kugler, who is set to step down on Friday. Miran's term will run until Jan. 31, 2026. "It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," Trump said in a post on Truth Social. "In the meantime, we will continue to search for a permanent replacement," Trump continued. "Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!" Miran served as an adviser of economic policy for the Treasury Department during Steven Mnuchin's tenure as Treasury Secretary during Trump's first administration. He was also a senior strategist at Hudson Bay Capital Management. Miran is credited as being one of the authors of Trump's tariff policy and a key architect of his economic agenda. He has also been linked with the push for a so-called Mar-a-Lago currency accord, based on a paper he wrote laying out various strategies for rebalancing US trade while working in the private sector. Kugler unexpectedly announced last week that she would step down from the Fed's Board of Governors, just under six months before her term was set to expire on Jan. 31, 2026. Kugler, who has served as a Fed governor since Sept. 13, 2023, will return to Georgetown University as a professor this fall. Miran's appointment will add not only a Trump administration official onto the Fed board, but also likely another member who is in favor of the central bank cutting interest rates as soon as its September policy meeting. Last week, Fed governors Chris Waller and Michelle Bowman both voted against the Fed's decision to keep interest rates unchanged in a range of 4.25%-4.50%. Paul Ashworth, chief North America economist for Capital Economics, said the president's decision to nominate Miran is a "welcome surprise," noting that while he doesn't always agree with Miran he is a "good pick" who should easily be confirmed by the Senate. Miran's confirmation is pending Senate approval, but with lawmakers currently on August recess, it's unclear how long that could take. The nomination hearing will be a priority for the Senate Banking Committee, but lawmakers aren't due back in session until September 9, which is just one week before the Fed's policy meeting on September 16 and 17. The tight timeline makes it unlikely Miran could be confirmed and sworn in by the meeting. Senator Tim Scott, chair of the Senate Banking Committee, called Miran "an accomplished economist" and said that he "looks forward to quickly considering his nomination in the Senate Banking Committee." While Miran is set to be on the Fed's board for only a few months, investors will be looking for any clues about what his nomination means for the president's eventual nomination for the next Fed Chair and his intentions for influencing monetary policy. President Trump will need to nominate someone to the Fed Board of Governors for a full 14-year term once the short-term Fed Governor position's term is up on January 31 next year. If Miran performs to Trump's liking it's possible he could be re-nominated to a full 14-year term. The president said he's narrowed down his choice for the next Fed Chair to three individuals. Bloomberg reported earlier on Thursday that Waller is emerging as the favorite to replace Jerome Powell as Fed chair among Trump's advisers. The president said he also favors former Fed Governor Kevin Warsh and current Director of the president's National Economic Council Kevin Hassett. Warsh has experience navigating the central bank as he served as a Fed governor from 2006 until 2011 and acted as former Fed Chair Ben Bernanke's liaison to Wall Street during the chaos of the 2008 financial crisis. Warsh is also a known figure to Trump, who interviewed him for the Fed chair post eight years ago before deciding to nominate Powell. Warsh has been critical of the Fed of late, saying that the central bank needs a regime change and that it's not just about the chairman, but a range of people. He's argued on Fox Business last month that the costs involved in renovating the Fed's headquarters represent one of several examples of how the Fed "has lost its way" and that the American people "need a reformer to fix" the institution and rebuild its credibility. When it comes to policy, Warsh has suggested that the Fed could look past inflation related to tariffs because they'd be a one-time increase. Hassett, meanwhile, already has a close relationship with Trump, given that he advises the president on economic policy and served in the first Trump administration. Hassett has said there's no reason why the Fed shouldn't cut rates now, something the president has repeatedly hammered the central bank to do. He has indicated he would accept the job of Fed Chair if Trump chooses him. This week he accused the central bank of injecting politics into its decision making during an appearance on Fox Business. Similar to Warsh, Hassett suggested Fed leadership has lost its way, noting that 'the job of the leadership is to drive a nonpartisan consensus of the board, and that's not what we're seeing right now.' He said the Fed board 'is going to have to change,' and that he favors going back to the era of Alan Greenspan— where the Fed chair had a large influence over policy decisions. 'The board is going to have to go back to the kind of … Alan Greenspan approach of driving consensus, having healthy debate,' said Hassett. The White House also hopes that Powell will decide to leave the Fed Board of Governors when his chairmanship is up next year in May 2026. That would open up a second seat that Trump can fill. Powell has not yet said whether he intends to do that; his term as a Fed governor is not up until 2028. If Powell does not vacate his seat, the open governor's seat could be the only opportunity the president has to put his stamp on a fresh face for Fed Chair. 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Mint
6 days ago
- Business
- Mint
America's promotion of stablecoins could have global consequences
Donald Trump has imposed stiff tariffs on Indian goods entering the US market. This part of his disruptive mercantilist agenda to bring US trade with the rest of the world back into balance has quite naturally dominated news headlines over the past few months. The US is our biggest trading partner and economists have been sweating their spreadsheets to give us some initial estimates of how these higher tariffs will affect the Indian economy. Also read: As dollar gains ground, will India's high-net-worth individuals switch to stablecoins? Less attention is being paid to another ongoing shift in US policy. Trump wants to harness the growing popularity of digital finance to strengthen US economic power. His administration seeks to build a regulatory framework around stablecoins, or cryptocurrencies whose value is backed by fiat currencies such as the dollar. Trump has already signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). A stablecoin maintains a fixed rate of exchange with an underlying asset, unlike cryptocurrencies such as Bitcoin or Ethereum, whose price fluctuates every day, sometimes wildly. The reason for their price instability is that the supply of these cryptocurrencies is determined by a rigid algorithm, so prices bounce around depending on demand conditions. In contrast, since the main attraction of a stablecoin is its stable value against an underlying asset, issuers mint new tokens when there is higher demand for the stablecoin. That by definition means that issuers have to buy more of the underlying asset such as the US dollar. In other words, the growing use of stablecoins will create extra demand for their underlying assets. US Treasury Secretary Scott Bessent estimates that the value of dollar-backed stablecoins could hit $2 trillion in the next few years, nearly eight times their current value. The move to promote the use of stablecoins seeks to strengthen the dominance of the US currency in the global economy. The stablecoins that are currently available on crypto exchanges are predominantly backed by US dollar assets, according to data from the Bank of International Settlements. All this matters because national power depends not just on economic size, military power and technological dominance, but also on monetary heft. The US move to use cryptocurrencies to consolidate the importance of the dollar thus also deserves more public attention. Monetary affairs have been central to the Trumpian agenda. The widely read paper written by Stephen Miran, now chairman of the US council of economic advisors, argues that the American economy has paid a heavy price for providing the rest of the world its global reserve currency. Miran wrote his paper when he was working at Hudson Bay Capital. According to him, the demand for US dollars from countries that run trade surpluses keeps the US currency overvalued despite its trade deficit. In Miran's view, the overvalued dollar played a role in hollowing out US manufacturing. Also read: Reduce friction: Let regulated stablecoins transform India's remittance economy The Miran Doctrine in effect calls for a grand re-adjustment of exchange rates. The US dollar needs to weaken to reflect its trade balance. However, the move to provide a formal regulatory framework for stablecoins will have exactly the opposite effect. It seeks to increase the investment demand for US dollar assets such as government treasury bills. This is a profound contradiction that lies at the heart of Trumpian mercantilism. It also takes us back to an earlier paradox in international economics—the Triffin Dilemma—which shows that a country seeking to provide the global reserve asset needs to run a trade deficit. The Trump administration appears to believe that growing demand for stablecoins that have a fixed exchange rate with the dollar will maintain demand for underlying assets such as US government bonds. The flow of money into stablecoins backed by the dollar will lead to more buying of US government bonds, pushing down market yields. The current annual interest bill of the US government is close to a trillion dollars. If stablecoins backed by the US dollar get used more intensively in the coming years for international payments, remittances and private sector savings, then it will pose new challenges to monetary policymakers in other parts of the world. One issue is the future of central bank digital currencies that have been launched with much fanfare. They are claims on the national central bank, while a dollar-backed stablecoin will be a claim on the US Federal Reserve. That has consequences for the balance of monetary power. Another important challenge is the potential loss of monetary sovereignty. Research shows that stablecoin usage increases sharply during episodes of high inflation or financial stress, and so the ability of a central bank to manage money may be compromised in such situations. Capital controls will also be more difficult to protect in case people in a country begin to hold more international assets via stablecoins. Remittances could also begin to come into a country without flowing through the traditional financial system. Also read: Stablecoins are on the rise: Bond investors should pay attention The manic price volatility of regular cryptocurrencies such as Bitcoin make them poor monetary units for transactions and do not serve as useful units of account for the same reason. Stablecoins promise to avoid such problems by tethering their value to an underlying asset, even though there have been cases when their prices have diverged from their underlying asset values. The GENIUS Act will have implications for monetary management in other countries, including India.
Forbes
16-06-2025
- Business
- Forbes
2025 Forbes Iconoclast Summit: Best Ideas: The Geopolitical Play
| Jun 16, 2025, 02:54PM EDT Forbes Executive Editor Matt Schifrin is joined by Hudson Bay Capital CEO & CIO Sander Gerber at the 2025 Forbes Iconoclast Summit in New York City.
Bloomberg
11-06-2025
- Business
- Bloomberg
Hedge Fund Hudson Bay Expands in UAE With Abu Dhabi Office After Dubai
Hudson Bay Capital Management is setting up an office in Abu Dhabi, expanding its presence in the United Arab Emirates beyond Dubai, as both cities continue to attract global asset managers. The $20 billion multistrategy investment firm plans to open in Abu Dhabi before the end of this year, according to people familiar with the matter. The office will add to its 10-person presence in Dubai, one of the people said, asking not to be identified discussing confidential information.
