Trump Ally at the Fed Offers Guidance to Kevin Warsh Before Leadership Transition

DALLAS – As Kevin Warsh prepares to take the reins at the Federal Reserve, a newly elevated Trump ally at the central bank is signaling how he believes the job should be done — and how the next chair should navigate a pivotal moment for monetary policy.

Speaking at the Dallas Federal Reserve, Governor Stephen Miran offered simple advice for Kevin Warsh, Trump’s nominee to replace Federal Reserve Chair Jerome Powell.

“Be forward-looking, not backward-looking,” Miran said. “If you’re going to be excessively backward-looking, you’re guaranteed to be behind the curve,” he added.

TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIR

Federal Reserve Governor Stephen Miran was nominated by President Donald Trump to join the central bank. (Victor J. Blue/Getty Images / Getty Images)

In Miran’s view, the current economic backdrop does not justify a strictly data-driven posture, diverging from the data-dependent approach that has defined the central bank under Powell.

“The time for data dependence is when you have enormous uncertainty. I don’t think we have enormous uncertainty,” he stated.

A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY

Jerome Powell, chairman of the U.S. Federal Reserve, is expected to complete his term in May. (Al Drago/Bloomberg/Getty Images / Getty Images)

Miran’s comments provide an early glimpse into how one of the Fed’s newest voices perceives the balance between anticipating economic shifts and reacting to incoming data.

President Donald Trump appointed Miran in August, transitioning him from leading the White House’s Council of Economic Advisors to a position at the world’s most influential central bank. He joined the board amid increasing turmoil at the Fed, including a legal clash between the Trump administration and Governor Lisa Cook, as well as a Justice Department investigation involving Powell.

Cook’s case is currently before the Supreme Court, and Powell has not been charged with any wrongdoing.

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Warsh’s path to the Fed chair could face delays due to Republican opposition linked to the investigation into Powell. Senator Thom Tillis, R-N.C., has stated he will oppose consideration of Fed nominees until the administration concludes its investigation — a position that holds significant weight given his seat on the Senate Banking Committee.

Kevin Warsh, former governor of the U.S. Federal Reserve, was widely considered for other roles within the previous Trump administration. (Tierney L. Cross/Bloomberg via Getty Images / Getty Images)

With Tillis placing a hold on Warsh’s nomination, forcing it out of committee would require a discharge vote on the Senate floor — a maneuver that needs 60 votes and appears unlikely in a closely divided chamber.

Regardless of the timing of Warsh’s confirmation, Miran’s early remarks signal how the Fed’s policymaking framework and its dynamic with the White House could shift in the months ahead.

DALLAS – As Kevin Warsh prepares to take the reins at the Federal Reserve, a newly elevated Trump ally at the central bank is signaling how he believes the job should be done — and how the next chair should navigate a pivotal moment for monetary policy.

Speaking at the Dallas Federal Reserve, Governor Stephen Miran offered simple advice for Kevin Warsh, Trump’s nominee to replace Federal Reserve Chair Jerome Powell.

“Be forward-looking, not backward-looking,” Miran said. “If you’re going to be excessively backward-looking, you’re guaranteed to be behind the curve,” he added.

TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIR

Federal Reserve Governor Stephen Miran was nominated by President Donald Trump to join the central bank. (Victor J. Blue/Getty Images / Getty Images)

In Miran’s view, the current economic backdrop does not justify a strictly data-driven posture, diverging from the data-dependent approach that has defined the central bank under Powell.

“The time for data dependence is when you have enormous uncertainty. I don’t think we have enormous uncertainty,” he stated.

A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY

Jerome Powell, chairman of the U.S. Federal Reserve, is expected to complete his term in May. (Al Drago/Bloomberg/Getty Images / Getty Images)

Miran’s comments provide an early glimpse into how one of the Fed’s newest voices perceives the balance between anticipating economic shifts and reacting to incoming data.

President Donald Trump appointed Miran in August, transitioning him from leading the White House’s Council of Economic Advisors to a position at the world’s most influential central bank. He joined the board amid increasing turmoil at the Fed, including a legal clash between the Trump administration and Governor Lisa Cook, as well as a Justice Department investigation involving Powell.

Cook’s case is currently before the Supreme Court, and Powell has not been charged with any wrongdoing.

CLICK HERE TO GET FOX BUSINESS ON THE GO

Warsh’s path to the Fed chair could face delays due to Republican opposition linked to the investigation into Powell. Senator Thom Tillis, R-N.C., has stated he will oppose consideration of Fed nominees until the administration concludes its investigation — a position that holds significant weight given his seat on the Senate Banking Committee.

Kevin Warsh, former governor of the U.S. Federal Reserve, was widely considered for other roles within the previous Trump administration. (Tierney L. Cross/Bloomberg via Getty Images / Getty Images)

With Tillis placing a hold on Warsh’s nomination, forcing it out of committee would require a discharge vote on the Senate floor — a maneuver that needs 60 votes and appears unlikely in a closely divided chamber.

Regardless of the timing of Warsh’s confirmation, Miran’s early remarks signal how the Fed’s policymaking framework and its dynamic with the White House could shift in the months ahead.