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Deng Tong, Bitchain Vision
On September 10, 2025, the U.S. Senate Banking Committee voted 13-11 to vote against Trump’s nominated Federal Reserve Board member Stephen Milan.This result may cause Milan to take his seat before the Fed’s two-day meeting from September 16 to 17.
Who is Milan?Will the Fed become Trump’s control agency?What cryptocurrency-related comments have been made in Milan?
1. Milan
1. Milan resume overview
Stephen Ella Milan is an American economist who has served as chairman of the Economic Advisory Board since 2025.
Milan graduated from Boston University with a bachelor’s degree in economics and philosophy.Graduated from Harvard University in 2010 with a Ph.D. in Economics.
After graduating from Harvard, he worked as an analyst at Lily Pond Capital Management and later joined Fidelity Investment and Sovarnum Capital.Milan became Sovarnum’s head of macroeconomic strategy in 2015.
In April 2020, Milan served as senior consultant to the U.S. Treasury Department’s economic strategy.After Biden took office in January 2021, Milan returned to the private sector and co-founded Amberwave Partners.Joined Hudson Bay Capital Management in February 2024 as a senior strategist.
In December 2024, Trump nominated Milan as a candidate for chairman of the Economic Advisory Committee.In March 2025, it was confirmed by the U.S. Senate.Trump nominated Milan to replace Kugler after Fed director Kugler announced his resignation in August.
2. Trump’s “Tariff Designer”
In February 2024, Becente began supporting Trump’s 2024 presidential campaign.Becente finds Milan for his support.In the same year, Milan donated $1,000 to Never Surrender, a political action committee that supports Trump, and $1,000 to the joint fund-wealth committee Trump 47.On December 22, Trump nominated Milan as a candidate for chairman of his Economic Advisory Council.
In January 2025, Bloomberg News reported thatMilan is one of several Trump advisers and is studying the use of the International Emergency Economic Powers Act to gradually increase tariffs.On February 27, he attended a hearing on the Senate Committee on Banking, Housing and Urban Affairs.Milan reiterated his support for raising tariffs to encourage investment.On March 6, the Bank, Housing and Urban Affairs Commission approved his nomination by a party vote of 13 to 11.On March 12, Milan’s appointment was confirmed by the Senate.
As chairman of the Economic Advisory Council, Milan formulated Trump’s tariff policy; the Financial Times called him the “designer” of Trump’s tariffs.Milan’s approach is contrary to optimistic forecasts and early data.
3. The Fed’s career begins
On August 7, 2025, Trump nominated Milan to replace Kugler as a member of the Federal Reserve Board of Governors.Milan will hold the position until the remaining term of Kugler, January 2026.Trump has suggested he will look for a “permanent replacement” who can replace Powell.Milan’s takeover gave Trump more time to consider Powell’s successor.
JPMorgan analysts say the yield curve could steep if Milan’s nomination is confirmed.Although Milan’s term will end in a few months, he will be able to influence discussions about interest rates and Powell’s successor, according to the New York Times.
On September 4, Milan attended a hearing from the Senate Committee on Banking, Housing and Urban Affairs.Milan intends to continue to serve as chairman of the Economic Advisory Committee during her tenure as the Federal Reserve Board of Directors, but will take a period of unpaid leave.
2. Will the Federal Reserve become Trump’s control agency?
1. Milan’s takeover may cause the Federal Reserve to surrender to Trump
CNN believes that Milan’s inauguration will be a milestone in Trump’s attempt to make the Fed surrender to his personal will.
Milan has publicly stated that it plans to remain ties with the White House during its Fed’s tenure.He did not resign as the president’s economic policy adviser and chairman of the Economic Advisory Committee, but planned to take unpaid leave.In this way, he can return to government office after he finishes his term in the Federal Reserve.
“According to legal advice, Milan can take unpaid leave from his post on the Economic Advisory Board if confirmed,” White House spokesman Kush Desai said in a statement.
This arrangement has caused concerns from the outside world:Milan may be dependent on Trump and is reluctant to support policy measures that are economically beneficial but can cause trouble for Trump at a political level.Some former White House officials, legal experts, economists and Democratic lawmakers warned that confirming Milan’s qualifications in this case could set a dangerous precedent and undermine the Fed’s long-standing independence.
2. Many parties are worried about Milan’s performance of their duties
Once inGlen Hubbard, chairman of the Economic Advisory Committee during the Bush administrationIt is believed that: “Obviously, this approach is inappropriate, and the question of whether it can perform its duties independently is highly concerned.”
Katherine Judge, a well-known law professor at Columbia University who studies financial markets and regulationIt pointed out that the Fed’s founding bill does not “directly” stipulate whether people like Milan can essentially retain White House positions while taking office as central bankers.This arrangement was not considered when Congress formulated the Fed system charter and established multiple binding mechanisms in 1935.”From these carefully designed mechanisms, Congress clearly hopes that the Fed will have substantial independence.” Any attempt to damage the Fed’s independence may bring “great risks” to the economy.
Lisa Gilbert, co-chair of the overseeing organization Public CitizenHe said: Milan’s continued connection with the White House “completely violates” the original intention of Congress to establish the Federal Reserve.This is especially inappropriate at a time when Trump is trying to force the Fed to cut interest rates.“The Trump administration has been constantly putting pressure on the Fed, and this dual identity is inherently problematic given that we know they are trying to exert influence on this independent institution.”
Virginia Senator Mark Warner“Trump’s attempt to place political supporters in the Fed will bring greater instability to consumers. I strongly oppose the nomination of Stephen Milan and urge my colleagues to reject this latest move to politicize the Fed.”
Senate Banking Committee Senior Member, Massachusetts Democrat Elizabeth Warren“This nomination is clearly a test of Dr. Milan’s loyalty in Trump, and each vote determines whether he can return to the White House. It’s not independence, it’s slavery. If he is confirmed to be on the board in this case, his credibility in the market, business and the public will have zero credibility.”
3. Trump’s desire to control
Trump has made no secret of his desire to have a central bank that is more compliant and meets its interest rate cut requirements.For months, the Fed has maintained interest rates stable to control inflation.The president even boasted that he was about to gain majority support in the powerful Federal Reserve Council, and that Milan could be the next supporter to join.
If Trump succeeds in removing another director, Cook, on mortgage fraud charges, he will be given another chance to appoint a member of the Federal Reserve Board of Governors.In addition, the president will also appoint a new presidential candidate after Jerome H. Powell’s term as chairman of the Federal Reserve ends in May next year.
Since the beginning of his second term, Trump has had a huge impact on the current state of U.S. economic policy by imposing historic tariffs and putting huge pressure on the Federal Reserve.Trump’s impact on the Federal Reserve and the U.S. economy will become clearer in the coming months and weeks.
On August 29, the lower court ruled that most of the tariffs authorized by the president to impose emergency powers were illegal.Now, Trump hopes that the conservative-majority U.S. Supreme Court overturns the ruling.
According to the U.S. Department of Labor, the construction and manufacturing jobs have decreased throughout the year, down 10,000 and 31,000 respectively compared with three months ago.Manufacturers and service providers are still frustrated by Trump’s tug-of-war trade war and have difficulty planning ahead, according to a business survey by the American Institute of Supply Management (ISM).
3. Milan’s cryptocurrency comments
In December 2024, Milan said when participating in the Forward Guidance blog program,The United States should focus on policies that support innovation: “I think financial deregulation will be a strong component of this. I think cryptocurrencies may play an important role in innovation and leading a new round of economic prosperity for the Trump administration.”
In November 2023, Milan responded to Zhao Changpeng’s resignation, “I have always been amazed at how many ‘innovations’ have been achieved in recent decades by evading regulation. Uber, cryptocurrency, Airbnb…”
Many people in the cryptocurrency field welcomed Milan, believing it was a positive progress for the cryptocurrency industry.
Under Milan’s leadership, the Federal Reserve may adopt policies to promote cryptocurrency innovation and its integration with traditional finance to accelerate the integration of cryptocurrencies into mainstream finance.
Milan’s view, coupled with the fact that cryptocurrencies have traditionally performed well in low interest rates and high liquidity environments, could be an important catalyst for assets such as Bitcoin and Ethereum.
