Milan resigns from the White House position to remain at the Federal Reserve, market expects Waller to take over

Federal Reserve Governor Stephen Miran has officially resigned from his position as Chairman of the White House Council of Economic Advisers (CEA), ending his controversial dual role between the Federal Reserve and the White House. This decision marks his focus on central bank work while alleviating concerns about the independence of the Federal Reserve.

According to White House officials, Miran sent a letter to President Trump on Tuesday announcing his formal departure from the Council of Economic Advisers. He had previously taken an unpaid leave from the CEA to serve as a Federal Reserve Governor, with his interim term originally set to expire last Saturday.

In his letter, Miran stated, "I promised the Senate that if I continued to stay at the Federal Reserve after January, I would formally leave the Council of Economic Advisers. I believe it is important to keep my promise while continuing to fulfill my duties at the Federal Reserve."

This unusual dual role arrangement had previously drawn criticism, with opponents arguing that Miran's failure to fully resign from his White House position could threaten the independence of the central bank. Earlier that same day, Senate Banking Committee Democrats sent a letter demanding Miran resign from his Federal Reserve position to end this "improper arrangement."

Miran stated he would remain at the Federal Reserve until his successor is confirmed. Trump announced last week plans to nominate former Federal Reserve Governor Kevin Warsh to be the next Federal Reserve Chairman, and he is expected to appoint Warsh to succeed Miran's position.

Interim Term Raises Independence Concerns

Miran has held both positions since September of last year. At that time, President Trump nominated him to serve as a Federal Reserve Governor, and he was confirmed by the Senate. This was an interim appointment to fill the vacancy left by Adriana Kugler, who was appointed by the Biden administration and left office early in August of last year, with the term having expired last Saturday.

Initially, Miran only took an unpaid leave from the CEA chairmanship and hinted that he might return to the White House after his term at the Federal Reserve ends. This arrangement immediately drew criticism, with skeptics arguing that retaining a White House position could undermine the independence of the Federal Reserve.

Keeping Senate Commitments

In his resignation letter on Tuesday, Miran emphasized the importance of fulfilling his commitments to the Senate. He clearly stated that if he continued to work at the Federal Reserve beyond January, he would formally leave the Council of Economic Advisers. This statement echoed his commitment made during the confirmation hearing.

Senate Banking Committee Democrats pressured Miran earlier on Tuesday to leave his Federal Reserve position. However, Miran chose the opposite path—leaving his White House position to focus on central bank work.

Miran Remains at the Federal Reserve, Market Expects Warsh to Succeed

Miran has indicated he will remain a Federal Reserve Governor until his successor is confirmed by the Senate. Trump announced last week plans to nominate Warsh as the Federal Reserve Chairman, and the market expects Warsh to be appointed to Miran's position.

However, the nomination process may face obstacles, as North Carolina Republican Senator Thom Tillis has threatened to block all Federal Reserve nominees due to the Justice Department's investigation into current Chairman Jerome Powell and the Federal Reserve headquarters renovation project.

For investors, such procedural uncertainties often amplify sensitivity to signals regarding policy continuity and institutional independence