On 3 February 2024, Federal Reserve Governor Stephen Miran stepped down from his role as chair of the White House’s Council of Economic Advisers (CEA). This resignation comes as he honors a prior commitment made to the Senate amidst his ongoing tenure at the Federal Reserve.
Resignation in Context
Miran had been on unpaid leave from his CEA position since his appointment by former President Donald Trump last year. This role was to fill an unexpected vacancy on the Fed’s Board of Governors, with his term scheduled to expire on 31 January 2024. Miran’s dual role had sparked criticism from Democratic senators, who perceived it as an overreach of presidential influence over the central bank.
Promises Kept
In his resignation letter, Miran stated, “I promised the Senate that if I should stay on the Board past January, I would formally depart the Council.” He emphasised the importance of integrity in his commitments while continuing his duties at the Federal Reserve.
What’s Next for the Fed?
- Former Fed Governor Kevin Warsh is nominated as the next chair.
- Miran can remain on the board until his successor is confirmed by the Senate.
- The White House has indicated no immediate decision on the acting chair of the CEA, currently Pierre Yared.
Political Tension Around the Fed
Miran, who has consistently advocated for lower interest rates in every Fed meeting since his appointment, intersects with broader political narratives. Trump’s desire for easier monetary policy has driven discussions around the Fed’s leadership as his term comes to an end.
Additionally, both former Chair Jerome Powell and Governor Lisa Cook face scrutiny amidst ongoing investigations by the Department of Justice. These probes have raised concerns about political pressure on Federal Reserve officials, further complicating the central bank’s operations.
The political landscape surrounding the Federal Reserve continues to evolve, with Miran’s departure marking a pivotal moment in this ongoing saga.