WASHINGTON (AP) — Federal Reserve governor Stephen Miran has stepped down from his position as chair of the White House's Council of Economic Advisers, ending a controversial arrangement where he held positions at both institutions.
His resignation was confirmed by White House spokesman Kush Desai late Tuesday.
President Donald Trump appointed Miran in September to a seat on the Fed's seven-member board of governors after Adriana Kugler, who was appointed by
President Joe Biden, abruptly resigned. Miran completed her term, which ended Jan. 31. Yet he can remain on the Fed's board until a replacement is confirmed by the Senate.
It is unusual for someone to keep a White House position while also serving as a Fed governor, a nonpartisan position. Previous presidents have appointed aides to the Fed, but for decades they gave up their White House positions before joining the Fed. Miran took an unpaid leave of absence instead.
Miran said when he was named in September that he would step down from his position at the CEA if he remained on the Fed board after Jan. 31. Fed governors vote on interest rate decisions and bank regulatory policy.
“In accordance with the pledge he made to the Senate during his confirmation to the Federal Reserve’s Board of Governors, Stephen Miran has submitted his resignation from the Council of Economic Advisers," Desai said.
The move underscores the intrigue around the Fed and its upcoming personnel changes. Trump has nominated Kevin Warsh, a former Fed official, to replace current Fed chair Jerome Powell, whose term atop the central bank ends May 15.
Yet Powell could, under a quirk in the Fed's structure, remain on the board after his term as chair ends and deny Trump the opportunity to fill another seat. Many observers, as result, expect Warsh to take Miran's seat and then be elevated to replace Powell in May, but that sequence of events hasn't yet been confirmed.
