The Federal Reserve governor and chairman candidate nominated by Trump, James Bullard, supports interest rate cuts, stating that tariffs do not lead to inflation

U.S. President Donald Trump's nominee for Federal Reserve Governor, Stephen Miran, who is also the Chairman of the White House Council of Economic Advisers, and James Bullard, the former President of the St. Louis Federal Reserve and considered one of the leading candidates for the next Federal Reserve Chair, both stated in separate media interviews on Tuesday that they do not believe tariffs will trigger inflation, a view consistent with Trump's desire for interest rate cuts. Trump has nominated Miran to fill the remaining months of the term of former Federal Reserve Governor Adriana Kugler, who left office last Friday, and is currently awaiting confirmation by the U.S. Senate. Bullard's name has also appeared in media reports as one of at least six potential successors to Federal Reserve Chair Jerome Powell, whose term will end in May next year. "Tariffs Will Not Trigger Inflation" In their interviews, neither made explicit statements regarding their voting tendencies on interest rates. However, both praised Trump's economic growth policies and agreed with his view that inflation is not a concern at present. Miran expressed that he is very pleased to see U.S. inflation "performing well," and stated that there is "no evidence" that tariffs cause inflation. He noted that there may be "related price fluctuations," but no evidence suggests inflation is accelerating. "I do believe that inflation is overall stable, especially since the President took office." "There is still absolutely no evidence that tariffs will trigger inflation; many who originally expected an economic crisis have now found that this situation has not occurred, and it still has not happened." These remarks were made following the release of the latest inflation data by the U.S. Bureau of Labor Statistics on Tuesday. The data showed that the U.S. Consumer Price Index (CPI) rose 2.7% year-on-year in July, although still above the Federal Reserve's 2% target, it was slightly below Wall Street expectations. However, the core inflation indicator rose 3.1% year-on-year, marking the fastest growth since January. Miran also mentioned that "a tide of tenants" is pushing up housing rents, with illegal immigration contributing to the surge in tenants. New car inflation has not seen a substantial increase. Bullard stated that data continues to show that Trump's massive tariffs have not pushed up inflation. He expects the Federal Open Market Committee to begin cutting interest rates in September, with a cumulative cut of one percentage point over the next 12 months, bringing rates "close to neutral levels." "The committee paused its rate-cutting plans six months before the tariffs were implemented. Now we have six months of evidence. I do not believe tariffs will lead to inflation. Taxes will not lead to inflation either. The impact is very limited based on the data, just a one-time price adjustment." "It Is Important for the Federal Reserve to Maintain Independence" Both Miran and Bullard emphasized the importance of the Federal Reserve maintaining its independence. However, Miran declined to comment further on this topic, citing that his nomination is about to enter the Senate confirmation process. Last year, he proposed increasing presidential control over the Federal Reserve Board. "I have always been clear that the independence of the Federal Reserve is crucial. However... my nomination is about to be submitted to the Senate, and I really cannot say much about this now to avoid getting ahead of the Senate's process." Milan co-authored a paper for the Manhattan Institute last year, advocating for a complete reform of the Federal Reserve's governance structure, including shortening the terms of governors and increasing presidential control over the board. He also called for an end to the "revolving door" phenomenon between the executive branch and the Federal Reserve, and for the nationalization of the 12 regional Federal Reserve banks. During his two terms, Trump publicly criticized Federal Reserve officials multiple times for not lowering interest rates in a timely manner. After the CPI data was released on Tuesday, he posted on Truth Social, demanding the Federal Reserve to cut rates by 3 percentage points all at once, and again criticized Powell: "Powell always acts too slowly, and the losses caused are immeasurable. Fortunately, the U.S. economy is doing very well, and we have shaken off Powell and that complacent board." Brad responded by saying that Trump "has the right to express his views": "He is experienced in the real estate market, and what the real estate industry seeks is the lowest possible loan rates. This is good for him. He has his own opinions, and many people have opinions. If you don't want to hear these, then this job may not be suitable for you." When asked if he believed he could receive Senate confirmation before the next Federal Reserve meeting in mid-September, Milan replied: "That depends on the Senate... I can't speak for them."