Stephen Miran, who was expected to leave his position at the Federal Reserve by the end of this week, will remain in office due to ongoing political developments surrounding the central bank leadership. As President Trump approaches a decision on his nominee to potentially succeed Fed Chair Jerome Powell, the path to confirmation for any candidate remains obstructed.
Retiring Senator Thom Tillis of North Carolina has vowed to block the Senate Banking Committee from advancing any nominees until the Justice Department terminates its investigation into Powell. Meanwhile, the administration has indicated that the investigation should proceed without interference, as Treasury Secretary Scott Bessent emphasized earlier this month. This political standoff means that Miran is effectively stuck in his role, as the law permits Fed governors to continue serving until their successors are officially appointed and confirmed.
Tillis articulated his position on the matter, stating, “In reality, the only way I move on any Fed position is for this to be adjudicated — because otherwise, you’re really giving weight to the idea that the Fed is no longer independent.” He has not received communication from the White House regarding the lifting of his hold and remains firm in his stance, citing the DOJ’s investigation as the reason for his actions.
Miran, who holds a Harvard doctorate in economics, was confirmed by the Senate last year to complete a term that ends on Saturday. However, without a Senate-confirmed successor in place, Miran will remain at the Federal Reserve for the foreseeable future. Peter Conti-Brown, an associate professor of financial regulation at The Wharton School, noted that Miran’s continuation at the Fed is “for the indefinite future.”
Looking ahead, Miran is anticipated to voice dissent during an upcoming Fed meeting where officials are expected to maintain current monetary policy. This will be the first meeting since the DOJ launched its investigation into Powell’s conduct and following the Supreme Court’s discussions regarding Trump’s efforts to dismiss central bank governor Lisa Cook. Karen Petrou, managing partner of Federal Financial Analytics, predicts that Miran will continue to advocate for deeper interest rate cuts than what the Federal Open Market Committee (FOMC) might be willing to implement, contributing to discussions but possibly lacking impact on actual policy decisions.
This situation brings to light the complexities involved in central banking governance, underscoring the influence of political dynamics on economic policy-making. As the Federal Reserve navigates these challenges, the focus remains on how these developments may shape future monetary policy decisions in a fluctuating economic environment.