Musical Chairs & Policies At The Fed

President Donald Trump on Thursday nominated Council of Economic Advisers Chairman Stephen Miran to serve out the remaining term of Federal Reserve Governor Adriana Kugler. Trump said Miran will serve in the role until January 31, 2026, while he continues a search for a permanent replacement. The Senate will probably confirm his nomination quickly and before the September meeting of the FOMC.

If so, then there could be at least three dissenters on the FOMC if the committee votes to pass on a cut in the federal funds rate (FFR) in September. They will argue that a weakening labor market justifies a rate cut. There might be a new group of dissenters if the Fed cuts the FFR. They might object that a rate cut risks heating inflation.