Federal Reserve Governor Stephen Miran submitted his letter of resignation on Thursday, effective when or shortly before his successor, Kevin Warsh, is sworn in.
Miran was appointed by President Trump to serve out the remaining five months of former Fed Governor Adriana Kugler’s term as a temporary appointment ahead of the president’s Fed chair nomination. Now that Warsh has been confirmed as the next Fed chair, Miran is stepping down.
Miran cautioned in his resignation letter that the Fed needs to do a better job accounting for the impact of what he called “nonmonetary forces” on inflation and their implications for setting interest rates. Miran said lower immigration and deregulation both act to reduce inflation.
Read more: How jobs, inflation, and the Fed are all related
Miran also stressed that the Fed needs to think critically about inflation data, noting that there are numerous biases in how the data is constructed. He highlighted that portfolio management fees as well as composition and quality issues in software could be distorting inflation data higher now as artificial intelligence drives the stock market higher.
“While there’s always measurement error in inflation, a severe problem arises when those errors grow over time; the expansion of noise due to these errors has implied an effective reduction in the Federal Reserve’s inflation target,” Miran wrote.
“If the Federal Reserve doesn’t adjust for these errors, it will run unemployment higher than it has to, fighting fake rather than real inflation,” Miran added. “I have argued forcefully against this dynamic.”
He also emphasized that monetary policy operates with a lag and that Fed officials need to be forward-looking to incorporate these effects now.
Federal Reserve Board Governor Stephen Miran participates in a board meeting at the Federal Reserve on March 19, 2026, in Washington, DC. (Kevin Dietsch/Getty Images) · Kevin Dietsch via Getty Images
Miran’s appointment was seen as controversial. Before serving as a Fed governor, he was President Trump’s chairman of the Council of Economic Advisers and took a leave of absence from the position for the first four months, rather than leaving it altogether.
His decision drew ire from critics who said that, although Miran warned about a “revolving door” for Fed officials, he was committing the same act. Miran ended up resigning from his White House position after four months after he testified during his confirmation hearing that he would do so if he remained on the Fed board for longer.
During his time as governor, Miran dissented at every single Federal Open Market Committee meeting starting last September, first preferring to cut rates by twice as large as the committee was cutting and subsequently arguing for a quarter-point cut when the committee opted to hold rates steady.