US President Donald Trump candidate Stephen Milan has become chairman of the Economic Advisors Council.
Annabelle Gordon | Reuters
Stephen Milan, a candidate for President Donald Trump’s role as Open Federal Reserve Governor, has vowed to support central bank independence and its dual mission: price stability and maximum employment.
“In my view, the most important task of a central bank is to prevent oppression and swelling. The independence of monetary policy is a key component of its success.”
The Senate Banking Committee will hold a hearing on Milan’s confirmation Thursday morning. The chairman of the Economic Advisors Council and close advisers of Trump are to fill the final months of their term, which was unexpectedly vacant by Fed Gov. Adriana Kugler. The candidate will offer Kugler’s term of office, which expires on January 31, 2026.
Milan’s appointment comes amid speculation that Trump will primarily seek to nominate the “shadow chair,” whose job is to act as a gadry on the board. Trump said the candidate for the Coogler seat will be temporary, not a permanent replacement for Powell.
The President is pushing for significantly lower borrowing costs. Milan has been critical of the Fed in the past, and has been troubled by its offensive stimuli, particularly during the COVID crisis.
“If confirmed, I will faithfully carry out my role according to the mandate assigned by the Congress. My opinions and decisions are based on what is best suited to macroeconomic analysis and its long-term stewardship,” Milan said. “The Federal Open Market Committee is an independent group with monumental work and I intend to maintain that independence and to bring the people of America to the fullest extent of my abilities.”
However, Milan also raised several questions regarding the Fed’s oversight of its non-duty activities, including the central bank’s balance sheet.
“The Fed oversees the most important global financial institutions. It sets different money prices for borrowers and lenders, including other central banks. The ultimate structure of the Fed’s balance sheet is a free question,” he said in a statement.
