Trump's newest voice at the Fed has advice for Kevin Warsh before he takes the helm

Core Viewpoint - The article discusses the upcoming leadership change at the Federal Reserve with Kevin Warsh nominated to replace Jerome Powell, highlighting the advice from Governor Stephen Miran on how Warsh should approach monetary policy during a critical economic period [1][3]. Group 1: Monetary Policy Approach - Miran advises Warsh to adopt a forward-looking perspective rather than a backward-looking one, emphasizing that being excessively focused on past data could lead to being behind the curve [2]. - Miran believes the current economic conditions do not warrant a strictly data-driven approach, which has characterized the Fed under Powell, suggesting that the time for data dependence is when there is significant uncertainty, which he does not perceive at present [5]. Group 2: Political Context and Challenges - Miran's appointment to the Fed by President Trump comes amid significant turmoil, including legal issues involving other Fed officials and investigations related to Powell [8]. - Warsh's nomination may face delays due to Republican opposition linked to the ongoing investigation into Powell, with Senator Thom Tillis indicating he will oppose Fed nominees until the investigation concludes [9]. - The hold placed by Tillis on Warsh's nomination could complicate the confirmation process, requiring a discharge vote in the Senate, which is challenging in a closely divided chamber [11].