Federal Reserve mouthpiece: Trump plans to nominate Milan to the Federal Reserve, challenging the consensus on tariff inflation

August 9, "Federal Reserve Messenger" Nick Timiraos: President Trump's plan to nominate economic adviser Stephen Milano to the Federal Reserve Board of Governors will add a voice within the Federal Reserve that clearly questions conventional wisdom, especially about how tariffs affect inflation and economic growth. Many Fed officials worry that tariffs will weaken the economy while driving up prices, leaving the central bank in a dilemma: whether to cut interest rates to support the economy, or maintain interest rates to control inflation. Milan, on the other hand, believes that this fear is the opposite - the economy will benefit from tariffs without significantly affecting prices, which will allow the Federal Reserve to resume the process of cutting interest rates that was suspended at the beginning of the year. The question is whether his arguments are persuasive enough to influence broader committee decision-making - or perhaps they may not even be useful if fears of a weak job market prompt Fed officials to resume rate cuts.