Recently, Trump unexpectedly nominated economic advisor Stephen Miran to serve on the Federal Reserve Board of Governors, with a term ending in January 2025. This move is seen as a strategic arrangement before the current Fed Chair Powell steps down in May next year, aimed at positioning an ally who supports interest rate cuts.

Miran is known for his dovish stance. He has publicly advocated for shortening the terms of governors and proposed that governors 'serve at the president's will.' More notably, he has also suggested placing the Fed's funding under the control of congressional appropriations, and these proposals have been interpreted as an intention to undermine the independence of the Fed.

This nomination news has caused quite a stir in the market, leading to a retreat in the dollar index. Market participants are generally concerned that the Fed may face more political interference. Analysts point out that if Miran successfully joins the Federal Reserve Board of Governors, it could exacerbate divisions within the Federal Open Market Committee (FOMC) and weaken the Fed's consistency in external communications.

On a deeper level, this move may signal Trump's intention to push for more radical monetary policy reforms in the future. With the 2024 U.S. presidential election approaching, the direction of monetary policy will undoubtedly become one of the focal points of attention from all parties. How the Fed maintains a balance between political pressure and economic reality will be an important issue worth continuous attention.