Stephen Miran has stepped down from his position leading the White House Council of Economic Advisers (CEA), effectively ending the rare circumstance of simultaneously holding high-level positions at both the Federal Reserve and the White House. The White House confirmed Miran's resignation late Tuesday through spokesman Kush Desai.
Initially appointed by President Donald Trump in September to the Federal Reserve's seven-member Board of Governors, Miran took the role following the sudden resignation of Adriana Kugler, who had been appointed by President Joe Biden. Miran served out the remainder of Kugler's term, which concluded on January 31. Despite his resignation from the White House advisory post, Miran retains his seat on the Federal Reserve board until the Senate confirms a successor.
This dual appointment was notable because it diverged from the conventional practice of maintaining the Federal Reserve as a nonpartisan institution separated from White House staff roles. While it is not unprecedented for U.S. presidents to select aides for the Fed, it has been customary in recent decades for appointees to resign from their White House duties prior to confirmation to the Federal Reserve. To manage this anomaly, Miran took an unpaid leave from the White House job during his Federal Reserve tenure.
At the time of his appointment in September, Miran stated his intention to relinquish the CEA chairmanship should he remain on the Fed board past the end of Kugler's term. This pledge was reiterated as his resignation materialized in late January. Fed governors hold considerable influence, voting on monetary policy decisions and bank regulatory matters.
Following Miran’s resignation announcement, White House spokesperson Desai remarked, "In accordance with the pledge he made to the Senate during his confirmation to the Federal Reserve’s Board of Governors, Stephen Miran has submitted his resignation from the Council of Economic Advisers." This development highlights the complex personnel dynamics surrounding the Federal Reserve’s leadership.
Within the broader scope of Fed leadership transitions, President Trump has nominated Kevin Warsh, a former Fed official, to succeed current Federal Reserve Chair Jerome Powell. Powell’s term as chair is scheduled to conclude on May 15. It is important to note a structural peculiarity within the Federal Reserve system that may allow Powell to remain on the board even after his chairmanship ends, potentially limiting the President’s ability to immediately appoint a new board member for that seat.
Observers anticipate that in such a scenario, Warsh could first fill the seat vacated by Miran and subsequently be elevated to chairmanship to succeed Powell in May. However, this sequence remains unconfirmed. The evolving situation has significant implications for monetary policy direction and regulatory oversight affecting banking and financial markets.