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Summary
Federal Reserve Governor Stephen Miran announced his resignation, effective upon the swearing-in of incoming Chair Kevin Warsh or shortly before. Miran’s departure was expected, as his seat on the Fed’s Board of Governors will be taken by Warsh. In his resignation letter, Miran criticized the Fed’s approach to measuring inflation and expressed enthusiasm for Warsh’s planned changes, including a shake-up of communications and balance sheet policies.
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Miran’s resignation was expected, but his criticism of the Fed’s inflation approach adds a new layer. The Fed’s approach to measuring inflation has been a topic of debate. Warsh’s planned changes, including a shake-up of communications and balance sheet policies, are seen as a significant shift. Miran’s enthusiasm for these changes suggests a new direction for the Fed. The outgoing governor’s parting shot on inflation measurement will likely be remembered.
Author: Evan Null
Resignation and Criticism
Miran’s resignation letter included criticism of the Fed’s approach to measuring inflation, stating that if the central bank “doesn’t adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation.”
Warsh’s Planned Changes
Miran expressed enthusiasm for Warsh’s planned changes, including a shake-up of communications and balance sheet policies. These changes are seen as a significant shift for the Fed.
Senate Confirmation
The Senate narrowly confirmed Kevin Warsh as chair of the Fed, clearing the way for his swearing-in soon after outgoing Chair Jerome Powell’s term ends on Friday.
Miran’s Legacy
Miran, a noted dove, voted for interest-rate cuts in every policy meeting during his period as a policymaker, including dissenting votes urging the central bank to cut by more than fellow officials agreed.
