Miran Welcomes Warsh: “Fantastic Choice” to Lead the Fed
Federal Reserve Governor Stephen Miran expressed his enthusiasm for Kevin Warsh following his nomination by President Donald Trump as Fed Chair. In an interview with CNBC on Friday (January 30th), Miran expressed confidence that Warsh would perform solidly and be well-received within the central bank.
Miran even called Warsh a “fantastic choice.” He also indicated that Warsh would likely fill the position he currently holds, and that he believes Fed officials would welcome Warsh positively—“treated with respect” within the institution.
Beyond the chairmanship, Miran also highlighted a major issue that is often the “root of debate” at the Fed: the balance sheet. He emphasized that he wants the Fed’s balance sheet to be reduced much more aggressively, as he believes a smaller balance sheet is the right direction. Miran cited regulation as one of the factors influencing the size of the central bank’s balance sheet. Miran also offered insight into the dynamics of the policy meeting: he said it wasn't difficult to express disagreements at this week's FOMC meeting—a sign that internal discussions can be quite open, despite differing views among officials.
On inflation, Miran took a calmer tone: he didn't think there was an inflation problem at the moment. He assessed that the strong PPI report likely wouldn't change the broader inflation picture. He also emphasized that tariffs were not the primary driver of inflation, adding that bond market movements didn't worry him because they were still moving within a reasonable range.
Interestingly, Miran also touched on gold. He called the gold market small, a comment that could be interpreted as a message that gold volatility doesn't always reflect broader macro conditions—at least from a policy perspective.
Source: Newsmaker.id
