Trump appointed Stephen Miran to the Federal Reserve, which may indicate plans to amend the Federal Reserve Act and reduce its independence. Analysts from JPMorgan highlighted that proposed reforms could grant the president power to terminate Fed board members, allow Congress to control the Fed's budget, and transfer regulatory responsibilities from the Fed to the Treasury. There are concerns about the broad support needed for such changes in Congress. Miran's agenda includes criticisms of the Fed's operations, labeling them as plagued by 'groupthink.'
The Federal Reserve could be getting more than another dovish vote with the appointment of Stephen Miran as governor. It could signal an intention to amend the Federal Reserve Act and diminish policymakers' independence, according to analysts at JPMorgan.
In a note on Friday, JPMorgan analysts led by chief economist Bruce Kasman highlighted key proposals, such as giving at-will power to the U.S. president to fire Fed board members and Fed bank presidents, giving Congress control of the Fed's operating budget, and shifting the Fed's regulatory responsibility over banks and financial markets to the Treasury.
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