Milan resigns from White House position and stays at the Federal Reserve, market expects Waller to succeed.

Federal Reserve Governor Stephen Miran has officially resigned from his position as Chair of the White House Council of Economic Advisers (CEA), ending his controversial dual role at both the Federal Reserve and the White House. This decision signals his focus on central bank duties and alleviates concerns about potential threats to Fed independence.

According to White House officials, Miran sent a letter to President Trump on Tuesday announcing his formal departure from the Council of Economic Advisers. Previously, he had taken an unpaid leave from the CEA to serve as a Fed Governor, with his temporary term originally scheduled to end last Saturday.

In the letter, Miran wrote: "I promised the Senate that if I continue at the Fed after January, I would formally resign from the Council of Economic Advisers. As I continue my service at the Fed, I believe it is important to keep my word."

This unusual dual appointment arrangement had previously drawn criticism, with opponents contending that Miran's retention of his White House post could threaten central bank independence. Earlier that same day, Democrats on the Senate Banking Committee sent a letter urging Miran to resign from the Fed in order to end this "inappropriate arrangement."

Miran stated he would remain at the Fed until his successor is confirmed. Last week, Trump announced plans to nominate former Fed Governor Kevin Warsh as the next Fed Chair, and is expected to appoint him to Miran’s seat.

Temporary Term Raises Independence Concerns

Since last September, Miran has held both positions simultaneously. President Trump nominated him to the Fed, and he was confirmed by the Senate. It was a temporary appointment, filling the vacancy left by Biden appointee Adriana Kugler, who departed early in August last year. That term expired last Saturday.

Initially, Miran had only taken unpaid leave from the CEA Chair role, implying he might return to the White House after his Fed term ended. This arrangement was immediately criticized, with detractors warning that retaining his White House job could undermine the Fed’s independence.

Honoring Senate Commitment

In Tuesday's resignation letter, Miran emphasized the importance of honoring his commitment to the Senate. He made clear that if he remained at the Fed beyond January, he would formally resign from the Council of Economic Advisers, thus fulfilling the pledge he made during his confirmation hearing.

Earlier that Tuesday, Senate Banking Committee Democrats pressured Miran to leave his Fed post. However, Miran chose the opposite route—leaving his White House role to focus on central bank duties.

Miran Stays on as Fed Governor, Markets Expect Warsh to Succeed

Miran has stated he will remain a Fed Governor until his successor is confirmed by the Senate. Last week, Trump announced plans to nominate Kevin Warsh as Fed Chair, and markets expect Warsh to be appointed to Miran’s seat.

But the nomination process may face obstacles, as North Carolina Republican Senator Thom Tillis has threatened to block all Fed nominees due to the Justice Department’s investigation into current Chair Powell and the Fed headquarters renovation project.

For investors, this kind of procedural uncertainty tends to heighten sensitivity to signals about policy continuity and institutional independence.

Risk Warning and DisclaimerThe market has risks; investments must be made cautiously. This article does not constitute individual investment advice, nor does it take into account the unique investment goals, financial circumstances, or requirements of particular users. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their specific situations. Investments made based on this article are at your own risk.