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Archive for September 17th, 2025

Stephen Miran sworn in as a member of the Board of Governors of the Federal Reserve System

September 17, 2025

Trump loyal Stephen Miran has been sworn as Fed Board member.

Dr. Stephen I. Miran took the oath of office as a member of the Board of Governors of the Federal Reserve System on Tuesday. The oath was administered by Judge Elizabeth L. Branch of the United States Court of Appeals for the Eleventh Circuit.

President Trump nominated Dr. Miran on September 2, 2025, and he was confirmed by the United States Senate on September 15, 2025. His term as a member of the Board ends on January 31, 2026.

What happens next will be keenly watched.

Posted in Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance | Leave a Comment »

Monetary policy operational frameworks – a new taxonomy

September 17, 2025

Paolo Cavallino, Mathias Drehmann, Richard Finlay and Julie Remache in the BIS bulletin (Sep-2025) article present a new taxonomy for understanding central banks’ operational frameworks:

Central banks’ operational frameworks are at the heart of monetary policy implementation. Yet the conventional classification falls short of capturing their wider implications for banks’ incentives and market outcomes. We propose a new taxonomy based on two key dimensions. First is the marginal opportunity cost of holding reserves, which influences banks’ incentives to trade reserves in the money market. Second is the quantity of reserves, which affects how banks manage liquidity risks and comply with regulatory and supervisory requirements. The continuous nature of these dimensions allows for a granular classification of operational frameworks. Applying the taxonomy to real-world operational frameworks uncovers unexpected similarities between distinct frameworks and highlights how similar designs can lead to differing outcomes.