Trump’s Fed ally offers advice to Kevin Warsh ahead of leadership change

DALLAS — As Kevin Warsh prepares to take over the reins at the Federal Reserve, Trump’s newly appointed central bank ally is showing he believes the job needs to be done — and how the next chair should navigate a key period of monetary policy.

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

“Look forward, don’t look back,” said Miran. “If you’re going to look back too much, you’re sure to be behind the curve,” he added.

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In Miran’s view, the current economic climate does not justify a strictly data-driven stance, a departure from the data-dependent approach that defined the central bank under Powell.

“The time of data dependence is when you have a lot of uncertainty. I don’t think we have a lot of uncertainty.”

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

Miran’s comments provide a glimpse into how one of the Fed’s new voices is looking at the balance between expected economic changes and reactions to incoming data.

The president Donald Trump tapped Miran in August, removing him from leading the White House Council of Economic Advisers and placing him in the seat of the world’s most powerful central bank. He joined the board amid growing turmoil at the Fed, including a legal battle between the Trump administration and Governor Lisa Cook and a Justice Department investigation involving Powell.

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

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Warsh’s path to the Fed seat may face delays amid Republican opposition tied to the Powell investigation. Sen. Thom TillisRN.C., said he would veto the Fed’s nominees until the administration completes its investigation — a stance that carries weight given his position on the Senate Banking Committee.

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

Holding Tillis Warsh’s appointmentforcing it out of committee would require a filibuster vote on the Senate floor — a maneuver that requires 60 votes and seems unlikely in the deeply divided chamber.

Whatever the timing of Warsh’s confirmation, Miran’s initial comments indicate how the Fed’s policymaking framework and its dynamics with the White House could change in the coming months.