WASHINGTON (AP) — Federal Reserve governor Stephen Miran has officially resigned from his role as the chair of the White House's Council of Economic Advisers (CEA), concluding a controversial arrangement that allowed him to serve in both positions simultaneously. This resignation marks a significant development amid ongoing discussions about the Federal Reserve's leadership and its impact on economic policy.
The announcement of Miran's resignation was made by White House spokesman Kush Desai late on a Tuesday. Miran’s dual roles had raised eyebrows since he was appointed by President Donald Trump to the Federal Reserve’s seven-member board of governors in September, following the abrupt resignation of Adriana Kugler, who had been appointed by President Joe Biden. Miran completed Kugler’s term, which concluded on January 31, and he has the option to remain on the Fed's board until the Senate confirms a replacement.
It is quite rare for an individual to maintain a position in the White House while also serving as a Federal Reserve governor, a role that is traditionally regarded as nonpartisan. In the past, presidents have occasionally nominated aides to the Fed board; however, they typically resigned from their White House roles prior to taking up their positions at the Fed. In Miran’s case, he opted for an unpaid leave of absence instead, allowing him to hold both positions concurrently.
Upon his appointment in September, Miran indicated that he would resign from the CEA should he remain on the Federal Reserve board beyond January 31. The Federal Reserve governors play a critical role in determining interest rate policy and regulating banks, which underscores the importance of separating these two positions to uphold the nonpartisan nature of the Fed.
In a statement, Desai confirmed, “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 statement highlights the commitment to transparency and accountability in governmental roles, particularly in influential positions that affect the national economy.
Miran's resignation comes at a pivotal time for the Federal Reserve, as it faces upcoming personnel changes that could impact monetary policy moving forward. President Trump has nominated Kevin Warsh, a former Federal Reserve official, to potentially replace current Fed chair Jerome Powell, whose term is set to expire on May 15. There are speculations that Powell might remain on the board after his chair term ends due to a unique aspect of the Fed’s structure, which could prevent Trump from filling another seat immediately. This creates a delicate situation where Warsh may occupy Miran's seat prior to taking over the chair position, a sequence that remains unverified as of now.
Overall, Miran's departure from the CEA reflects the complexities and sensitivities surrounding appointments within the economic advisory landscape, especially during the transition between administrations and in times of economic uncertainty. The anticipation surrounding the Federal Reserve's next moves and leadership changes continues to capture significant attention from policymakers and the public alike.
