Trump Appoints Stephen Milan to Federal Reserve Position

President Donald Trump has selected Stephen Milan, the chairman of the White House Economic Advisors Council, to temporarily fill the Federal Reserve vacancy left by Gov. Adriana Coogler. Coogler’s term is set to run until January 31, 2026, but Trump has stated that Milan’s appointment is provisional as they search for a permanent candidate.

In a statement, Trump expressed his pleasure in appointing Dr. Milan, pointing out his PhD in Economics from Harvard and his distinguished service during the Trump administration. “He does outstanding work,” Trump noted, emphasizing Milan’s economic expertise.

This nomination will require Senate confirmation amid rising tensions between the White House and the Fed over interest rates. Critics within Trump’s circle have previously condemned the central bank for sticking to high real interest rates, even with indications of slowing inflation and a weakening labor market.

Milan, who has previously served as Treasury Secretary and is a market economist, has publicly stated that tariffs imposed during the Trump administration are unlikely to lead to persistent inflation. He suggests that recent price increases might be more of a one-time adjustment rather than a sign of long-term inflationary trends.

This perspective aligns with Fed Gov. Christopher Waller, who argued against cutting interest rates at the recent FOMC meeting, deeming tariff-related inflation as temporary. Milan has complimented Waller for maintaining an independent stance on these matters.

Fed Chairman Jerome Powell has persistently warned about the potential risks of tariff inflation, signaling that caution is needed regarding rate reductions influenced by tariffs.

With a background in currency trading and fees, Milan brings a fresh viewpoint to the Federal Reserve, which currently lacks members with significant financial market experience. “No American candidate is stronger than Milan,” said a source within the White House, pointing out that his qualifications could provide valuable insights during this transitional phase.

The Senate is currently on recess and will not reconvene until early September. Milan was confirmed to his current post in March with a narrow 53-46 vote. His confirmation for the Federal Reserve position may face similar challenges.

Though Milan’s role is meant to be temporary, federal governors often remain in position even after their term expires until a successor is confirmed. Trump will have the opportunity to nominate a long-term replacement, and Fed Chairman Powell’s term is expected to end in May, which could serve as a point of interest for the upcoming discussions about the Fed’s leadership.