On August 8, 2025, an important personnel appointment drew widespread attention in Washington. Current Chairman of the White House Council of Economic Advisers, Stephen M. Miland, has been nominated to the Federal Reserve Board, taking over the remainder of Adriana Kuegler's term until January of the following year. This decision was made by the sitting president, who also stated that they will continue to search for a permanent successor.

As a PhD in Economics from Harvard University, Milan has consistently held a critical view of the Federal Reserve, aligning his perspective with the current president's advocacy for interest rate cuts. In the reform proposal he contributed to, he pointed out issues such as 'groupthink' and overreach within the Federal Reserve, and advocated for the separation of its banking regulatory powers to ensure the purity of monetary policy.

After the announcement of this news, the financial markets immediately experienced fluctuations. The Bloomberg Dollar Spot Index fell, while the prices of gold and cryptocurrencies saw significant increases. Analysts have mixed reactions to this appointment. Some experts believe that Milan's addition may strengthen the dovish voices within the council, increasing the likelihood of interest rate cuts this year. They pointed out that if there are three votes against, it will become more difficult to maintain the interest rates, which may indicate that we have entered a easing cycle.

However, some analysts remain cautious. They emphasize that Milan is just one of nine directors and that the term is only a few months, making it difficult to promote structural reforms or achieve significant rate cuts.

It is noteworthy that Milan has a different view from the current chairman of the Federal Reserve regarding the impact of tariffs on inflation. Milan believes that tariffs have not significantly affected macro prices, and even if they trigger inflation, it is only temporary. In contrast, the current chairman expresses concerns about the long-term effects of inflation.

Milan's nomination still requires approval from the Senate. This process is expected to take several weeks after the Senate reconvenes in early September. The chairman of the Senate Banking Committee has promised to expedite the review process, but the committee's chief Democratic member has expressed concerns about Milan's independence and stated that there will be a thorough examination of the relevant issues.

The Federal Reserve's next policy meeting is scheduled for mid-September, and the market will closely monitor the potential policy direction changes brought about by this personnel change.