Fed Mouthpiece: Trump Plans to Nominate Milan to the Federal Reserve, Challenging the Tariff-Inflation Consensus

According to a report by Jinse Finance, "Fed whisperer" Nick Timiraos stated that Stephen Moore, the economic advisor President Trump plans to nominate as a Federal Reserve governor, would introduce a distinctly contrarian voice within the Fed, especially regarding how tariffs impact inflation and economic growth. Many Fed officials are concerned that tariffs could drive up prices while weakening the economy, putting the central bank in a dilemma: whether to cut rates to support growth or maintain rates to control inflation. However, Moore believes this concern is misplaced—he argues that the economy will benefit from tariffs and that prices will not be significantly affected, which would allow the Fed to resume the rate-cutting cycle it paused earlier this year. The question is whether his views will be persuasive enough to influence broader committee decisions—or, if concerns about a weakening job market prompt Fed officials to restart rate cuts, his perspective may not even come into play.