Federal Reserve Governor Stephen Miran has submitted his resignation, effective upon or shortly after the swearing-in of Chairman-designate Kevin Warsh. Miran, a former chair of President Donald J. Trump’s Council of Economic Advisors (CEA), concluded his term on the CEA in February.
In his resignation letter to the president, Miran highlighted significant conservative regulatory achievements. He specifically pointed to his efforts in dismantling “reputational risk” guidelines, which he argued regulators had previously used to impose political preferences on banks concerning issues like firearms and climate change.
Miran also noted his collaboration with Vice Chairwoman Michelle Bowman to reduce excessive regulation, a move that successfully freed up over $100 billion in capital. This deregulation aimed to allow banks to extend credit more freely to U.S. households and businesses without penalty for holding safe assets such as U.S. Treasuries.
Regarding monetary policy, Miran cautioned that the Federal Reserve might combat “fake rather than real inflation” if it doesn’t account for current economic biases. He posited that reduced immigration and increased supply-side deregulation are “powerfully disinflationary” forces. Miran warned that inflation metrics are currently skewed by biases in areas like portfolio management fees and AI software, and failing to adjust for these could lead to unnecessary increases in unemployment.
Miran expressed optimism that Chairman-designate Warsh will steer the Federal Reserve back to its “narrow mandate,” away from political and cultural issues. He anticipates Warsh will continue the work of shrinking the central bank’s balance sheet and its overall presence in the U.S. financial system.
Warsh, 56, was confirmed by the Senate as the next Federal Reserve chair, succeeding Jerome Powell whose term expires soon.
About the Author
