Fed Governor Stephen Miran Resigns From White House Economic Council Role Amid Scrutiny Over Independence

BY COMFORT OGBONNA

Federal Reserve Governor Stephen Miran resigned on Tuesday as chair of the White House’s Council of Economic Advisers, following through on a commitment he made to the U.S. Senate as his tenure at the central bank extended beyond its originally temporary scope.

Miran had been on unpaid leave from his role at the Council of Economic Advisers since President Donald Trump appointed him last year to fill an unexpected vacancy on the Federal Reserve’s Board of Governors. That appointment was initially set to expire on January 31, a limited term that Miran and the administration said did not require him to formally step down from his White House post. The dual role, however, sparked sharp criticism from Democratic senators, who warned that it risked undermining the Fed’s independence by creating the appearance of political influence over a central bank policymaker.

At the time of his confirmation, Miran told lawmakers he had received legal advice indicating that he was not required to resign from the council because his service at the Fed was expected to last only a few months. Still, he pledged to leave the White House role if his time on the Fed board extended beyond January. In a resignation letter dated Tuesday, Miran said he was honoring that promise now that his service has become open-ended.

“I promised the Senate that if I should stay on the Board past January, I would formally depart the Council,” Miran wrote. “I believe it is important to stay true to my word while I continue to perform the job at the Federal Reserve to which you and the Senate appointed me.”

The move comes as President Trump reshapes the leadership of the central bank. On Friday, Trump announced plans to nominate former Fed Governor Kevin Warsh as the next chair of the Federal Reserve, a decision that would eventually fill the board seat currently held by Miran. Under federal law, however, Miran is permitted to remain in his role until a successor is confirmed by the Senate, a process that could take months.

The White House did not immediately indicate whether Pierre Yared, who is currently serving as acting chair of the Council of Economic Advisers, would be formally nominated to lead the council on a permanent basis.

Miran’s policy positions have also drawn attention since he joined the Fed last September. He has consistently argued for sharply lower interest rates at every meeting of the central bank, aligning closely with President Trump’s long-standing calls for easier monetary policy. Trump has repeatedly criticized the Fed for keeping rates too high and has made support for rate cuts a key criterion in selecting a new central bank chair.

The political pressure surrounding the Fed has intensified in recent months. Current Chair Jerome Powell, whose term as chair ends in May, disclosed in January that the Department of Justice had opened a criminal investigation into statements he made to the Senate regarding renovations of Fed buildings. Powell has characterized the probe as part of a broader effort by the administration to assert control over the traditionally independent central bank.

The Justice Department has also investigated Fed Governor Lisa Cook over alleged misstatements on her mortgage application. Cook has denied any wrongdoing and is suing to block Trump’s attempt to remove her from office, a case that is now before the Supreme Court.

Concerns about political interference have spilled over into the confirmation process for the Fed’s next leader. A majority of the Senate Banking Committee, including all Democratic members and one Republican, have criticized the investigation into Powell as an act of political intimidation. They have said they oppose moving forward with Warsh’s nomination while the probe remains unresolved, setting the stage for a contentious confirmation battle as the administration pushes ahead with its plans to reshape the Federal Reserve.