Trump is calling the Treasury adviser from the first term to the chairman of the economic team

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Donald Trump has tapped Stephen Miran, an economist who served in his first term, to chair the Council of Economic Advisers.

By being elected, the president-elect wants to be promoted to the economic chair of the White House not only the critic of the chairman of the Federal Reserve Jay Powell but who accused the Biden administration of manipulating the economy and “taking over” the role of the central bank.

“Steve will work with my Economic Team to deliver a Great Economic Boom that lifts up all Americans,” Trump said in a statement Sunday.

Miran was a senior economic policy adviser at the Treasury Department in the first Trump administration.

Currently a senior strategist at hedge fund Hudson Bay Capital Management, he said he is respected. “I look forward to working to help implement the President’s plan to create a growing, sustainable economy that brings prosperity to all Americans!” he wrote to X.

The White House Council of Economic Advisers is a three-person panel that advises the president on economic policy.

Trump has threatened US trading partners, vowing to impose sweeping tariffs, including 25 percent tariffs on imports from Mexico and Canada and 10 percent on Chinese imports, on his day the first in the office.

On the campaign trail, Trump vowed to impose tariffs of 20 percent on all US imports, as well as 60 percent tariffs on imports from China, suggesting that the policies of his second term can protect and hinder the global economy. markets than his first.

The president-elect has also promised to renew the tax cuts he made during his first term in the White House.

Earlier this year, Miran co-authored a paper indicting Biden’s Treasury Department. managing the economy during electionsarguing that the government’s reliance on short-term debt was “stealth quantitative easing” and hindered the Fed’s ability to fight inflation.

“By fixing the growth rate of credit, the Treasury controls the financial situation in a dynamic way, and with it, the economy, taking over the main functions of the Federal Reserve”, he wrote as an economist Nouriel Roubini.

“We call this instrument “activist Treasuance”, or ATI. By controlling the amount of interest rate risk that investors have, ATI works in a similar way to the Fed’s quantitative easing programs.”

In FT Alphaville last year, Miran wrote a warning message against the two bond market riskswhich “could undermine the Treasury’s ability to act as a risk-free collateral that supports the global financial system” and bring the US into the turmoil of an increasingly unstable economy.

Miran also hit out at Powell for recommending strong fiscal and monetary stimulus in October 2020, about a month before that year’s election, to help the economy recover during the Covid-19 pandemic.

“Powell was politically and economically wrong when he urged Congress to “go ahead” on the budget in October 2020, before the presidential election, suggesting that voters liked the Democrats’ $3 trillion than the 500 billion dollars of the Republicans”, Miran wrote. on X in September. We know what happened next.

Miran must be confirmed by the US Senate.

Last month, Trump nominated Kevin Hassett as chairman of the National Economic Council.