In Washington, Stephen Miran has formally resigned from his leadership role at the White House Council of Economic Advisers, concluding a unique period during which he served simultaneously as a Federal Reserve Governor. The resignation, communicated in a letter dated Tuesday, corresponds with the terms agreed upon by the Senate at the time of his Fed confirmation, obliging him to leave the White House post should his Fed tenure extend beyond January.
Miran's dual service was an uncommon setup, maintaining his White House responsibilities through an unpaid leave while functioning in his capacity as a Fed Governor. Initially, his term at the Federal Reserve, which came through the completion of a predecessor's tenure, officially expired on January 31. However, Miran continued to occupy the role beyond this date, providing the Trump administration a strategic opening to implement leadership changes within the Federal Reserve's upper ranks before Jerome Powell’s chairmanship concludes in May.
Trump has nominated Kevin Warsh to succeed Powell as the Fed chair. Under Federal Reserve regulations, only sitting Fed governors are eligible to assume the chairmanship. Presently, all governor seats are occupied, including Powell's own extended term leading through 2028. The plan under consideration involves replacing Miran with Warsh prior to Powell’s departure, thus positioning Warsh to ascend to the chair role subsequently. This intricate succession tactic underscores the administration's heightened focus on the Federal Reserve’s monetary policies, particularly interest rate decisions.
Throughout the previous year, President Trump and his supporters have subjected the Federal Reserve and its policymakers to intensive scrutiny and pressure. The criticism has centered on perceived delays in reducing interest rates sufficiently and swiftly, with Trump publicly rebuking Powell and even threatening his dismissal on multiple occasions.
Amidst this politicized backdrop, Powell has disclosed that federal prosecutors are probing his congressional testimony relating to renovations made to the Federal Reserve headquarters in Washington, DC. Powell described the investigation as a "pretext" aimed at augmenting pressure on the Federal Reserve and diminishing its independence from political influence.
During his tenure beginning in September, Miran has actively advocated for more aggressive interest rate cuts. His speeches reflect concerns about the prospect of a US economic downturn if the Federal Reserve hesitates to implement sufficient rate reductions. Demonstrating his stance, he dissented on four occasions during Fed meetings, calling for steeper rate reductions than those adopted by the majority.
In 2019, the Federal Reserve executed three decreases in interest rates, each by a quarter of a percentage point. Miran, however, supported more substantial half-point decreases, positioning himself outside the consensus view during those deliberations.
The White House praised Miran’s contributions, acknowledging his insightful economic perspectives and committed advocacy as significant assets to the President’s team. According to White House spokesperson Kush Desai, Miran established himself as a vital member of the Trump administration's economic leadership during his tenure.
As Miran steps down from the White House economic advisory role, his resignation represents one element of a broader sequence of personnel adjustments involving the Federal Reserve, reflecting the administration's focused efforts to shape monetary policy in alignment with its economic objectives.