A Fed exit with a political aftertaste
Federal Reserve Governor Stephen Miran has resigned, and he’s not exactly leaving on tiptoe. Along with the exit, he’s celebrating conservative regulatory wins — including the scrubbing of reputational-risk guidance, one of those wonky rules that bankers either love or hate depending on which side of the compliance meeting they’re sitting on.
Why markets should care
This isn’t just a personnel shuffle. When Fed voices change, the tone around supervision, bank regulation, and how aggressively the central bank polices risk can change too. That matters if you own banks, lenders, or anything sensitive to the regulatory weather forecast.
The Kevin Warsh subplot
Miran also threw his support behind Kevin Warsh as the next Fed chair, which turns this into a little bit of a chess match, not just a resignation letter. The chair race can shape everything from rate expectations to the Fed’s appetite for regulation — basically, the monetary-policy equivalent of picking the DJ before the party starts.
Big picture: a single resignation doesn’t rewrite the Fed overnight, but it can hint at where the wind is blowing. And right now, that wind is sounding a lot more deregulatory than dovish.