Stephen Milan Resigns from Economic Advisers Council

Stephen Milan has stepped down as chairman of the White House Council of Economic Advisers, concluding a controversial dual role he held in both the Federal Reserve and the Council.

This resignation was confirmed by White House press secretary Khush Desai late Tuesday.

Milan, appointed to the Fed’s board by President Donald Trump in September, took on the role following Adrianna Kugler’s abrupt departure, who had been nominated by President Joe Biden.

It’s worth noting that Milan’s term officially ended on January 31, but he can continue as a Fed board member until the Senate confirms his replacement.

Holding positions in both the White House and the Fed—considered a bipartisan role—was unusual. Historically, previous presidents have placed high-ranking aides within the Fed, but these individuals typically resigned from their White House roles beforehand. Milan, on the other hand, opted for an unpaid leave instead.

When he was nominated in September, Milan indicated his intent to resign from the CEA if he remained on the Fed board past January 31.

Federal Reserve directors are responsible for voting on interest rates and establishing bank regulatory policies. Desai stated, “In accordance with the commitments he made to the Senate upon his confirmation to the Federal Reserve Board, Stephen Milan has submitted his resignation from the Council of Economic Advisers.”

This situation underscores the ongoing dynamics surrounding the Fed and forthcoming personnel shifts. Notably, President Trump has nominated Kevin Warsh as a potential replacement for current Fed Chairman Jerome Powell, whose term ends on May 15.

Interestingly, Powell might remain on the board beyond his chairman term’s conclusion, which, in theory, could prevent Trump from filling that position. Many speculate that Warsh could take Milan’s place and potentially transition to replace Powell in May, although this has yet to be established.