Trump ally at the Fed gives advice to Kevin Warsh ahead of a leadership change

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

During a speech at the Dallas Federal Reserve, Governor Stephen Miran gave simple advice to Kevin Warsh, Trump’s nominee to replace Federal Reserve Chairman Jerome Powell.

“Be forward-looking, not backward-looking,” Miran said. “If you look too far back, you are guaranteed to be behind the curve,” he added.

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According to Miran, the current economic environment does not justify a strictly data-driven attitude, which deviates from the data-dependent approach defined by the central bank under Powell.

“The time for data dependence is when you have massive uncertainty. I don’t think we have massive uncertainty.”

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US Federal Reserve Chairman Jerome Powell is expected to complete his term in May. (Al Drago/Bloomberg/Getty Images/Getty Images)

Miran’s comments offer an early look at how one of the Fed’s newest voices sees the balance between anticipating economic shifts and responding to incoming data.

President Donald Trump tapped Miran in August, moving him from leading the White House Council of Economic Advisors to taking a seat at the world’s most powerful central bank. He joined the board amid growing turmoil at the Fed, including a legal clash 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 accused of any wrongdoing.

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Warsh’s path to the Fed chairmanship could face delays due to Republican opposition related to the Powell investigation. Sen. Thom TillisRN.C. has said he will oppose the Fed’s consideration of nominees until the administration completes its investigation — a position that carries weight given his seat on the Senate Banking Committee.

Kevin Warsh, former governor of the U.S. Federal Reserve, was widely seen as having changed his role in the previous Trump administration. (Tierney L. Cross/Bloomberg via Getty Images/Getty Images)

While Tillis gave something to hold on to Warsh’s nominationforcing it out of committee would require a discharge vote in the Senate — a maneuver that would require 60 votes and appears unlikely in a closely divided chamber.

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