Federal Reserve Governor Stephen Miran said Friday he anticipates that Kevin Warsh, who has been nominated to replace Jerome Powell as Fed chair, will likely take the single open governor slot created by Miran's own expiring term.
In an interview on CNBC, Miran explained that his term, which concludes on January 31, would be the only available governor position for Warsh to occupy in the procedural steps required to make him chair. Miran said the expected pace of the Senate confirmation process means he should remain at the central bank through the next Federal Open Market Committee meeting, which sets interest-rate policy.
Warsh was named to succeed Powell as chair; Powell's chair term is due to end in May, while his appointment as a Fed governor runs through 2028. Miran noted there is still a possibility that Powell could remain at the central bank, serving as a counterweight amid ongoing pressure from President Donald Trump.
Miran, who voted to dissent from the majority at this week's policy meeting in favor of an interest-rate cut, said he stands by that decision. He argued that headline inflation figures overstate the scale of the problem, stating plainly: "There is no inflation problem."
Addressing Warsh's reception within the Fed, Miran acknowledged that Warsh had criticized the institution during his campaign to become its leader but expressed confidence in Warsh's ability to persuade colleagues. "Warsh has had a long history of convincing people about his arguments, and so I think as a result, he's going to be treated with a lot of respect," Miran said. "I think people are going to find him very persuasive, because at the end of the day, I think a lot of his views are really right."
The sequence Miran described - Warsh filling Miran's expiring governor term as part of becoming chair - reflects the constrained number of seats available on the Board of Governors at the moment. Miran indicated the confirmation timeline is expected to align with his service through the next policy-setting session.
Key points
- Kevin Warsh has been nominated to replace Jerome Powell as Fed chair and is expected by Governor Miran to take Miran's expiring governor seat.
- Miran's term ends January 31, and he expects the confirmation process to keep him in place for the next FOMC meeting.
- Powell's chair term ends in May while his governor term runs to 2028, and there remains a possibility Powell could stay on the central bank amid political pressure.
Risks and uncertainties
- The timing and outcome of the Senate confirmation process could change the expected sequence of appointments - this affects governance at the Fed and could influence market expectations.
- Powell may remain at the Fed, creating potential for internal dynamics that are not yet resolved; this is an unresolved uncertainty noted by Miran.
- Differences in policy views among governors, highlighted by Miran's dissent calling for a rate cut, leave room for unpredictable policy debate at upcoming meetings.
Impacted areas
Developments around Fed leadership and the timing of confirmations are relevant to financial markets and to sectors sensitive to central bank guidance on interest rates.
Summary conclusion
Governor Miran expects Kevin Warsh to occupy the governor seat that Miran will vacate at the end of January as part of Warsh's path to the Fed chair role. Miran said the expected speed of confirmation should allow him to participate in the next policy meeting. He defended his recent dissent in favor of an interest-rate cut and asserted that headline inflation does not represent a broad inflation problem. Uncertainty remains around whether Powell will remain at the Fed and how internal policy debates will play out as leadership changes proceed.