Trump's newest voice at the Fed has advice for Kevin Warsh before he takes the helm

• Miran argues the current economy does not warrant strict data dependence, stating 'The time for data dependence is when you have enormous uncertainty. I don't think we have enormous uncertainty.'
• Sen. Thom Tillis (R-N.C.) has placed a hold on Warsh's nomination until the administration concludes its investigation into Powell, requiring an unlikely 60-vote discharge to advance confirmation.
• Miran joined the Fed board in August amid turmoil including a legal clash between the Trump administration and Governor Lisa Cook, whose case is now before the Supreme Court.

Summary

Federal Reserve Governor Stephen Miran, recently elevated from leading the White House Council of Economic Advisors, offered guidance for Kevin Warsh, President Trump's nominee to replace Fed Chair Jerome Powell. Speaking at the Dallas Federal Reserve, Miran advised Warsh to adopt a "forward-looking, not backward-looking" approach to monetary policy, warning that excessive reliance on historical data guarantees being "behind the curve."

Miran's remarks represent a departure from the data-dependent framework that has characterized Powell's leadership. He argued the current economic environment lacks "enormous uncertainty" that would justify strict data dependence, suggesting greater emphasis on anticipating economic shifts rather than reacting to incoming data.

Key Personnel Changes:

• Miran joined the Fed board in August after Trump moved him from the White House
• Warsh awaits confirmation as Powell's replacement, with Powell's term ending in May
• Powell has not been charged with wrongdoing despite a Justice Department investigation

Political Obstacles:

Senator Thom Tillis (R-NC) is blocking consideration of Fed nominees, including Warsh, until the Powell investigation concludes. Tillis sits on the Senate Banking Committee, giving his opposition significant weight. Bypassing his hold would require a 60-vote discharge procedure in the closely divided Senate, making swift confirmation unlikely.

Market Context:

Miran's appointment occurred amid heightened Fed turmoil, including legal disputes between the Trump administration and Governor Lisa Cook, whose case is before the Supreme Court. His early comments signal potential shifts in the Fed's policymaking framework and its relationship with the White House under new leadership.