Stephen Miran, Trump’s economic guru, is leaving the Fed. What happens now?

Stephen Miran, a member of the US Federal Reserve Board of Governors and former top economic adviser to President Donald Trump, has submitted his resignation. His departure is effective upon or shortly before his successor is sworn in. Analysts suggest Miran's exit will facilitate the leadership transition to incoming chair Kevin Warsh but is unlikely to change the Federal Reserve's policy direction. The move has prompted speculation about Miran's future, with observers considering a potential return to the White House or a move back to the private sector.

The US Senate is expected to confirm Kevin Warsh as the next Federal Reserve chair this week. Warsh, who previously served on the Fed's board and was known as an "inflation hawk," has publicly aligned with President Trump's view that interest rates are too high. Democrats criticize his nomination, viewing him as a potential "sock puppet" for the president, who has exerted pressure on the nonpartisan Fed. This confirmation occurs amid a turbulent period for the central bank, which has faced scrutiny from Trump regarding interest rate policy. Warsh has stated he will be an independent actor, but his ability to resist White House pressure is questioned, especially given Trump's past actions, including a criminal investigation into outgoing chair Jerome Powell.

Jerome Powell's term as Chair of the US Federal Reserve Board of Governors concludes on May 15, 2026, after a period marked by significant political pressure from President Donald Trump. Trump aggressively pushed for more aggressive interest rate cuts, often criticizing Powell and giving him the nickname "Too Late Powell." Powell consistently defended the Federal Reserve's independence, resisting these demands and only beginning rate cuts in September. He was initially appointed by Trump in 2018 and will continue to serve as a Fed governor. Kevin Warsh, a Trump appointee, will succeed Powell as Chair. Powell's tenure is characterized by his efforts to preserve the central bank's independence amidst these tensions.

Federal Reserve Chair Jerome Powell's tenure, marked by significant economic shifts and political challenges, is nearing its end. Appointed eight years ago when inflation and interest rates were low, Powell is stepping down amid persistent inflation above the Fed's target and a two-decade high in interest rates, alongside historically low unemployment. His leadership was tested by relentless personal attacks from President Donald Trump, and he notably pushed back against a Justice Department investigation, safeguarding the Fed's independence. Powell will remain on the board until he believes the central bank's autonomy is secure, a key aspect of his legacy.

Kevin Warsh has been confirmed as the new chair of the US Federal Reserve, succeeding Jerome Powell. His appointment has sparked debate about whether potential policy compromises with the Trump administration could impact American financial credibility and potentially benefit China. Analysts are divided, with some anticipating intensified competition with China under Warsh's leadership. Others, however, warn that perceived political interference in the Fed could lead to a global capital shift away from US assets. Warsh's policy vision reportedly centers on strengthening US economic dominance through technological advancements and a more efficient Federal Reserve, while maintaining a stable US dollar and flexible monetary policies, all within the context of long-term competition with China. The ultimate success of his strategy remains to be seen.

The US Senate has confirmed Kevin Warsh as the new chair of the Federal Reserve, succeeding Jerome Powell on May 14th. The 54-45 vote, largely along party lines with one Democratic exception, appointed Warsh to a four-year term as chair and a 14-year term on the Fed's rate-setting board. Warsh, a former Fed governor and economist, takes leadership at a time of rising inflation and pressure from the Trump administration to lower interest rates. Despite previously echoing calls for lower rates, his stance as an "inflation hawk" during his prior Fed tenure and his refusal to answer questions about the 2020 election have raised concerns among Democrats about his independence. Jerome Powell will remain on the Fed board as a voting governor.