Financial News: Fed's Miran To Step Down From Board Just

Fed's Miran To Step Down From Board Just Ahead Of Warsh Swearing In

(RTTNews) - Federal Reserve Governor Stephen Miran resigned from his position on the policy board "effective upon or shortly before the swearing in" of the chairman-designate Kevin Warsh.

President Donald Trump nominated Miran as a member of the Board of Governors in September last year after Adriana Kugler stepped down. His term ended on January 31.

Miran's resignation paves the way for Warsh as there is no vacant seat on the seven-member board. Warsh's nomination was confirmed this week, while his swearing in date is yet to be announced.

In his resignation letter, Miran, who was the chair of the Council of Economic Advisers to President Trump, said the Fed needed to "do a better job accounting for nonmonetary forces" such as lower population growth due to reduced immigration, and the effects of de-regulation on the supply side, and their implications for monetary policy.

".given monetary policy lags, policymaking needs to be forward-looking and begin to incorporate these effects now," he reiterated.

Miran said the Fed needs to critically evaluate inflation data. He highlighted portfolio management fees, and composition and quality adjustment issues in software as significant biases influencing inflation as "AI drives the stock market higher."

"While there's always measurement error in inflation, a severe problem arises when those errors grow over time; the expansion of noise due to these errors has implied an effective reduction in the Federal Reserve's inflation target," Miran said. "If the Federal Reserve doesn't adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation."

"I have argued forcefully against this dynamic," he added.

Miran's appointment to the Fed board created controversy as he took leave from the Trump administration. He dissented in every Fed policy meeting since his appointment last September.

In the three policy meetings till December, he sought bigger rate cuts of half basis points when the bank decided for a quarter basis point reduction. Thereafter, he favored a quarter basis point reduction when the FOMC chose to keep the fed funds rate steady.

Miran expressed excitement about changes Warsh is going to make in areas such as Fed's communication policy and balance sheet management.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews