Federal Reserve Governor Stephen Miran has announced his resignation, effective once incoming Chair Kevin Warsh is sworn into office. Miran’s departure was anticipated as his seat on the Fed’s Board of Governors will be filled by Warsh, who was narrowly confirmed by the Senate on Wednesday.
In his resignation letter, Miran criticized the Fed’s approach to measuring inflation, warning that failure to correct these errors could lead to unnecessarily high unemployment. "If the Fed doesn’t adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation," Miran wrote. He also expressed optimism about the changes Warsh plans to implement, particularly in communications and balance sheet policies.
Miran’s Tenure and Policy Stance
Miran, who joined the Fed in September, has been a noted dovish voice on monetary policy, consistently advocating for interest-rate cuts during his tenure. He even dissented in several policy meetings, urging more aggressive cuts than his colleagues were willing to support. Initially taking unpaid leave from his White House position when joining the Fed, Miran resigned from that role in February.
"If the Fed doesn’t adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation."
Warsh’s confirmation marks a significant shift in Fed leadership, with his swearing-in expected shortly after outgoing Chair Jerome Powell’s term ends on Friday. Miran’s resignation underscores the ongoing debate within the Fed over inflation measurement and monetary policy priorities.