Stephen Miran Leaves White House to Continue Role at Fed
Stephen Miran has officially resigned from his role as chair of the White House Council of Economic Advisers (CEA). This resignation aligns with his commitment to the Senate, as he continues his tenure at the Federal Reserve (Fed).
Confirmation of Departure from the CEA
Miran had previously been on unpaid leave from his CEA role. He was appointed by Donald Trump last year to serve on the board of governors at the Fed. His term on the Fed board, originally set to expire on January 31, has now been extended.
Reasons for Resignation
Democratic senators criticized the arrangement, arguing it would compromise the Fed’s independence. Miran stated he received legal counsel indicating he didn’t need to resign immediately. However, he promised the Senate that he would step down if his Fed tenure extended beyond January.
- Miran emphasized the importance of keeping his word in his resignation letter.
- The resignation letter was dated Tuesday and reviewed by Reuters.
Impact on Federal Reserve Leadership
Trump recently announced his intention to nominate Kevin Warsh as the next chair of the Fed, succeeding Jerome Powell. This nomination will fill the board seat currently held by Miran. He can remain in his position until a new appointee is confirmed by the Senate.
Candidates for CEA Chair Position
The White House has yet to comment on whether Pierre Yared, the acting chair of the CEA, will be officially appointed to the role.
Controversies Surrounding the Fed
Miran has consistently advocated for lower interest rates during Fed meetings since his appointment in September. Trump’s push for reduced interest rates has been clear and serves as a major criterion for selecting a new Fed chair.
Additionally, concerns arose regarding Powell, whose term ends in May, following revelations of a criminal investigation by the Department of Justice. This investigation pertains to Powell’s statements about Fed renovations and has been characterized by many Senate banking committee members as political intimidation.
- Some committee members oppose Warsh’s nomination amid the ongoing investigations.
- An investigation is also underway regarding Fed governor Lisa Cook, focusing on alleged misstatements on her mortgage application.
As the political landscape evolves, the future leadership of the Federal Reserve remains a key issue with significant implications for economic policy.
