Stephen Miran's Fed Appointment Just Confirmed Trump's Reset

The Architect of the 'Mar-a-Lago Accord' Is About to Enter the Federal Reserve

Recently, I wrote to you about how Trump had found "the perfect opening" to reshape the Federal Reserve when Governor Adriana Kugler unexpectedly resigned.

What I didn't expect was how perfectly this would confirm everything we've been tracking about Trump's Reset.

Last Thursday, Trump didn’t just fill that vacant Fed seat with any dovish voice. He appointed Stephen Miran—the mastermind behind what’s probably the most audacious economic strategy in modern history.

If you’ve been following our analysis, you already know Stephen Miran—and if you do, chances are you’ll agree this appointment is the clearest sign yet that Trump’s Reset isn’t just on the horizon. It’s already underway.

The Architect of Trump’s Reset

Stephen Miran is the author of A User's Guide to Restructuring the Global Trading System—the blueprint for what's been dubbed the "Mar-a-Lago Accord."

Source: Hudson Bay Capital

Published just days after Trump's victory last November, it outlines a comprehensive plan to flip the U.S. dollar's reserve status from a burden into a bargaining chip. To turn America's towering debt from an embarrassment into leverage. And to reorient the entire global economic structure in Washington's favor.

Now, to understand why Miran sees a reserve currency’s status as a burden in the first place, you have to dig into a little-known economic paradox.

It’s called Triffin’s Dilemma, named after Belgian economist Robert Triffin, and it describes the paradox that arises when a country’s currency also serves as the world’s reserve currency—like the U.S. dollar today.

To meet global demand for its currency, the issuing country must run persistent trade deficits—exporting more of its currency than goods and services.

This arrangement can help support global growth, but over time it wears down the issuing country’s industrial base, piles on debt, and leaves the economy more fragile.

If that country stops running deficits, the world can face a shortage of the reserve currency—slowing trade and pushing others toward alternative systems. But if it keeps running them, debt and imbalances keep growing. That’s the bind.

So if you’ve ever wondered why the U.S. economy is so financialized, so reliant on debt, and so heavily tilted toward “services”—this is why.

Triffin’s Dilemma is also why Miran refers to the U.S. dollar and Treasuries as “costly global public goods” America provides to the world—a burdensome affair he aims to address through “burden-sharing at the global level,” as he outlined in his April speech at the Hudson Institute. Here’s a snippet from that address:

In my view, to continue providing these twin global public goods, there needs to be improved burden-sharing at the global level.

(…)

The best outcome is one in which America continues to create global peace and prosperity and remain the reserve provider, and other countries not only participate in reaping the benefits, but they also participate in bearing the costs. By improving burden sharing, we can enhance resilience, and preserve the global security and trading systems for many decades into the future.

Now, I’ve read the whole speech, and I’m not wild about a number of things in there—like the “create global peace” line in the quote above. Nevertheless, with Miran now just steps away from becoming a Fed governor, pending Senate confirmation, it’s worth recalling what this “burden-sharing” actually looks like in his view. Here’s a quick rundown of his plan:

• Accept tariffs without retaliation — Let U.S. tariffs stand, generating revenue for Washington.

• Open their markets — End unfair trade practices and buy more American goods.

• Increase defense spending — Procure more U.S.-made weapons and equipment.

• Build factories in the U.S. — Set up local production and avoid tariffs altogether.

• Write checks to the Treasury — Yes, really. Direct financial contributions to help the U.S. fund "global public goods."

As far-fetched as some of this sounds, it’s worth keeping in mind that parts of Miran’s strategy are already playing out.

The European Union (EU), for one, recently backed off its planned €93 billion (~$102 billion) in retaliatory tariffs—agreeing to a new trade framework with Washington that keeps Trump’s duties in place while committing to buy $750 billion worth of U.S. energy and invest another $600 billion in the American economy, including U.S. military gear.

Over in the corporate world, big Indian consumer packaged goods names like Amul and ITC are looking at setting up plants in the U.S. or in third countries to keep their exports flowing.

Even Apple is now falling in line—announcing an additional $100 billion in U.S. manufacturing investments over the next four years, bringing its total U.S. investment to $600 billion.

The Takeaway

It was interesting to watch the market’s reaction to Miran’s Fed nomination…

The dollar slid, while gold, Bitcoin, and stocks all pushed higher.

Clearly, someone’s been reading the same breadcrumbs we have.

Meanwhile, JPMorgan called it an “existential threat” to Fed independence.

Sure—if we’re still pretending the Fed is truly independent, they might be right. But that’s the whole point—and exactly the bigger picture they’re missing: this is the execution phase of the most ambitious economic plan we’ve seen in generations.

This isn’t just about getting another dovish vote for rate cuts—Trump could’ve slotted in any of his yes-men for that. This is about installing the architect of America’s monetary reset directly inside the Federal Reserve.

As I noted earlier, parts of Trump’s Reset have already shown up in trade deals and investment shifts—but with Miran inside the Fed, the playbook moves from white papers and speeches into the heart of monetary policy.

Will they succeed?

We don’t know. What we do know is that the reset will present big opportunities for those who see it coming and position accordingly—and plenty of pain for those who don’t. As Matt Smith put it:

Succeed or fail, Trump’s plan will impact all of us and our investments. I confess I’m delighted Team Trump sees the problem… has a plan to avoid the worst, and catapult the U.S. to new prosperity. But what they need to do will not come without pain. A LOT of pain.

If you want the full picture but don’t want to slog through Miran’s dense 40-page white paper, Matt has already done the hard work—connecting the dots, including some that were barely hinted at in the original report (because stating them outright could have caused unnecessary alarm at the time).

Whatever you do, you’ll want to educate yourself on the topic—because the reality is, if you don’t understand what Trump’s Reset is about, you’re flying blind into one of the most significant monetary shifts in modern history.

Regards,

Lau Vegys