US President Donald Trump said Thursday he will nominate Council of Economic Advisers Chairman Stephen Miran to fill the final months of a vacant seat on the Federal Reserve, as the White House seeks a permanent member for the central bank's board of governors and continues its search for a new Fed chairman.

Miran has called for a complete overhaul of Fed governance and will take over from Fed Governor Adriana Kugler following her surprise resignation last week, as she returns to her tenured professorship at Georgetown University.

The term expires January 31, 2026, and must be confirmed by the Senate. Trump said the White House is continuing to search for someone to fill the 14-year Fed Board seat that will open on February 1. Trump is also considering options for a replacement for Fed Chairman Jerome Powell, whose term ends May 15, 2026.

Trump has failed to pressure Fed policymakers, including Powell, six of his fellow board members, and the 12 Fed presidents, to lower interest rates. Miran's appointment to the central bank, even as a replacement, gives the president a potentially more direct path to realizing his desire for looser monetary policy and influence over the world's most influential central bank.

"In the near term, acting Fed chairman Miran would give Trump the advantage of two things: direct policy influence without sacrificing the Fed Chair's options and influence," wrote LHMeyer analyst Derek Tang. "Internal disruption is a bonus."

Miran, in a paper he co-authored last year for the Manhattan Institute, outlined a rationale for increasing presidential control over the Fed Board, including shortening their terms. He also wants to end the "revolving door" between the executive branch and the Fed and nationalize the Fed's 12 regional banks.

It's unclear how much time he has at the Fed to try to implement these broad reforms, most of which would require Congressional action, or even a vote on interest rates. (alg)

Source: Reuters