Stephen Miran's appointment to the Federal Reserve Board is drawing public attention to potential changes in U.S. monetary policy.
Appointment of Stephen Miran to the Fed
Donald Trump has appointed Stephen Miran, currently chair of the Council of Economic Advisers, to fill the vacant seat on the Federal Reserve Board. This comes after Adriana Kugler stepped down before her term was completed.
Proposals for Reforming the Fed
Miran has put forth a range of reforms aimed at changing the governance structure of the Fed. Key proposals include allowing the U.S. president to fire board members at will, giving Congress control over the Fed's budget, and transferring oversight of banks to the Treasury. JPMorgan analysts expressed skepticism about whether such measures could gain support in Congress.
Political Risks for Fed Independence
Congress has the constitutional authority to change the Fed's mission and powers. Recently, some lawmakers, including Senator Bernie Moreno, have suggested the possibility of revising the Federal Reserve Act while supporting the Fed's independence. JPMorgan analysts note that despite the Senate's backing, the Fed may face risks associated with pressure from the administration.
Stephen Miran's appointment presents new prospects for increased control over monetary policy in the U.S., raising concerns about the future independence of the Federal Reserve.
