'Trump Economic Advisor' Miran Resigns as Fed Governor

Resignation to Take Effect Before or Upon Inauguration of New Fed Chair Warsh

As the inauguration of Kevin Warsh as the new Chair of the U.S. Federal Reserve (Fed) approaches, Fed Governor Stephen Miran, known as an "economic advisor" to U.S. President Donald Trump, has announced his intention to resign.

According to Bloomberg and CNBC on the 14th (local time), Governor Miran sent a letter to President Trump that day stating he will resign either immediately before or upon the inauguration of the new Chair, Kevin Warsh.

Fed Governor Stephen Miran. Reuters Yonhap News

In the letter, Governor Miran expressed anticipation for the changes that the new Chair Warsh intends to pursue at the Fed. He stated that serving as a Fed Governor and as Chair of the White House Council of Economic Advisers (CEA) had been "the greatest honor of my life." He added, "I look forward to Chair Warsh and the Fed advancing changes in communications policy, balance sheet policy, and focusing the Fed on its core mandate while distancing itself from political and cultural controversies."

He emphasized that monetary policy should be forward-looking, saying, "The Fed needs to better incorporate non-monetary factors and their impact on monetary policy." Specifically, he pointed out the effects of slowing population growth and reduced immigration on employment, as well as the role of deregulation as a driver of disinflation.

He also remarked, "Given that there is a lag in the effects of monetary policy, policy decisions must be made with the future in mind," stressing that "it is important to begin incorporating these factors starting now." He criticized the Fed's current inflation measurement methods, warning, "If these errors are not corrected, the Fed will be fighting fictional rather than actual inflation, unnecessarily increasing the unemployment rate."

Governor Miran was appointed last September to fill the remainder of former Fed Governor Adriana Kugler's term after her sudden resignation in August last year. During his tenure, he consistently voiced minority opinions at all six Federal Open Market Committee (FOMC) meetings, strongly advocating for interest rate cuts.

This content was produced with the assistance of AI translation services.