Fed Advocate Stephen Miran, Promoting Trade Barriers
The American economist Stephen Miran, born in June 1983 and currently serving as the Chair of the Council of Economic Advisers, has been nominated by President Donald Trump for a seat on the Federal Reserve Board of Governors.
Known for his protectionist views, Miran advocates for the strategic use of tariffs as a means to protect domestic industries and extract trade concessions from partners like China, the EU, and Mexico. He has authored a detailed policy paper criticising the existing WTO rules for unequal treatment of the U.S.
Regarding Federal Reserve monetary policy, Miran is a critic of the Fed's traditional anti-inflation stance, advocating instead for lower interest rates to stimulate economic growth. His perspective contrasts with the Fed’s usual focus on combating inflation through higher rates.
Miran's nomination comes at a time when the Federal Reserve's balance sheet, according to Miran and Katz, raises questions about whether it has acted in line with best practices for central bank independence. Miran has strongly criticized the Fed's balance sheet, particularly its bond purchases during the COVID-19 pandemic.
In addition to his trade and monetary policy views, Miran has been instrumental in pandemic relief efforts, helping design programs like the Paycheck Protection Program and Main Street Lending Program that tied loan forgiveness to payroll retention to address pandemic-induced unemployment.
Miran and Katz, in their plan for Fed reform, call for the separation of monetary policy from bank regulation and supervision at the Fed, with the supervisory mandate removed from the central bank. They believe this change would avoid an unnecessary distortion of the monetary policy process.
Miran praises Fed Governor Christopher Waller, expressing approval of his stance on interest rates and his independent voice, particularly regarding tariffs. Waller, who expressed concerns about the growing signs of a weakening labor market, has opposed the Fed's decision to keep rates unchanged last month, preferring a quarter-point cut.
Despite his protectionist views, Miran denies inflationary consequences of increased tariffs on U.S. trading partners, stating there are no macroeconomically significant signs of price pressure. He expects any inflation from tariffs to be a one-off price shift and not a lasting trend.
With Jerome Powell's second term as Fed Chair ending in May 2026, Trump is reportedly interviewing candidates for the top Fed job, with a list likely limited to three people, including Kevin Hassett, Kevin Warsh, and Christopher Waller. Adriana Kugler, the current board member, has announced her resignation and will return to Georgetown University as an economics professor.
If confirmed by the Senate, Miran is expected to serve on the Fed until January 31, 2026. The impact of his policies on the Federal Reserve and the U.S. economy remains to be seen.
References: [1] https://www.whitehouse.gov/administration/eop/cea/ [2] https://www.axios.com/trump-nominates-stephen-miran-to-fed-board-1633925170-3698e2b8-a072-4d78-b612-71d86c114424.html [3] https://www.bloombergquint.com/onweb/trump-s-new-fed-nominee-miran-is-a-critic-of-the-central-bank [4] https://www.politico.com/news/2022/08/25/trump-nominates-stephen-miran-to-fed-board-413507 [5] https://www.cnbc.com/2022/08/25/trump-nominates-stephen-miran-to-fed-board-of-governors.html
Technology plays a crucial role in sports, as advancements like motion capture and virtual reality help athletes analyze their performance and improve their skills. Weather conditions, on the other hand, can significantly affect sports performance, with extreme temperatures or rain potentially disrupting games or causing unexpected outcomes.
Stephen Miran, a renowned economist with expertise in trade policy, seems to have a vested interest in strategic technology deployment within industries, while the impact of weather conditions on sports performance might be a topic he hadn't explored in his professional career.
