JPMorgan Sounds Alarm: Trump’s Fed Pick Stephen Miran Could Spell Trouble

Wall Street's biggest players are sweating over Trump's latest power play—and it's not another NFT grift.

JPMorgan analysts warn Stephen Miran's Fed nomination risks destabilizing monetary policy at a critical juncture. The move reeks of political theater—because what's central banking without a side of drama?

Here's why the finance elite are clutching their pearls:

- Miran's unorthodox views could rock the boat during fragile economic recovery

- Fed independence hangs in the balance as election season heats up

- Markets hate uncertainty more than a Bitcoin whale hates capital gains tax

One thing's certain: when bankers start complaining about government appointments, you know someone's threatening their gravy train. The real question? Whether this is genuine concern or just Wall Street's version of 'old man yells at cloud.'

Concerns are growing over Congress’s power to reshape the Federal Reserve

Congress has the legal authority to change the Fed’s mission and powers. Last month, Wharton finance professor Jeremy Siegel told CNBC that Chair Jerome Powell might need to resign if he wants to protect the central bank’s long-term independence.

Siegel warned that if the economy falters, Trump could make Powell a “perfect scapegoat” and push Congress to grant the White House more control over the Fed. He noted that the Federal Reserve, created by the Federal Reserve Act of 1913, is not mentioned in the Constitution and has had its powers altered by Congress multiple times.

Senator Bernie Moreno, a Republican of Ohio, indicated last week that he is open to revising the Federal Reserve Act. His targets include the interest the Fed pays on bank reserves and its dual mandate. However, Moreno also said he supports the concept of central bank independence.

JPMorgan analysts said the Fed still enjoys enough backing in the Senate to make major legislative changes difficult, given the 60-vote threshold needed to bypass a filibuster.

Even so, the bank’s analysts believe the Fed will treat the threat to its independence seriously and may seek to defend it by making some concessions to the White House and Congress.

A tilt toward easier monetary policy could happen under persistent calls from the White House to lower interest rates. Rates have stayed steady as the Fed monitors inflation risks, particularly from Trump’s tariffs.

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