Federal Reserve Governor Stephen Miran announced his resignation on Thursday, which will become effective on or before Kevin Warsh is sworn in to succeed Fed Chair Jerome Powell. Miran stepping down is necessary for Warsh to become the next head of the central bank since there is no other vacancy on the seven-member board for Warsh to fill.
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Trade QQQ with leverageSince replacing Adriana Kugler last September, Miran has pushed for rate cuts at each Federal Open Market Committee (FOMC) meeting.
Miran Flags Inflation Data Flaws in Resignation Letter
In his resignation letter, Miran warned of measurement errors and biases in inflation data. “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,” he wrote.
In addition, Miran pointed out several disinflationary factors, including deregulation and lower population growth from reduced immigration.