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

Speaking at the Dallas Federal Reserve, Governor Stephen Miran offered simple advice for Kevin Warsh, Trump’s nominee to replace Federal Reserve Chair Jerome Powell.

“Be forward-looking, not backward-looking,” Miran said. “If you’re going to be excessively backward-looking, you’re guaranteed to be behind the curve,” he added.

TRUMP NOMINATES KEVIN WARSH TO SUCCEED JEROME POWELL AS FEDERAL RESERVE CHAIR

Federal Reserve Governor Stephen Miran was nominated by President Donald Trump to join the central bank. (Victor J. Blue/Getty Images / Getty Images)

In Miran’s view, the current economic backdrop does not justify a strictly data-driven posture, diverging from the data-dependent approach that has defined the central bank under Powell.

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

A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY

Jerome Powell, chairman of the U.S. Federal Reserve, is expected to complete his term in May. (Al Drago/Bloomberg/Getty Images / Getty Images)

Miran’s comments offer an early glimpse of how one of the Fed’s newest voices views the balance between anticipating economic shifts and reacting to incoming data.

President Donald Trump tapped Miran in August, shifting him from leading the White House’s Council of Economic Advisors to a seat at the world’s most powerful central bank. He joined the board amid mounting 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 charged with any wrongdoing. 

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Warsh’s path to the Fed chair could face delays amid Republican opposition tied to the probe into Powell. Sen. Thom Tillis, R-N.C., has said he will oppose consideration of Fed nominees until the administration concludes its investigation — a stance that carries weight given his seat on the Senate Banking Committee. 

Kevin Warsh, former governor of the U.S. Federal Reserve, was widely considered for other roles within the previous Trump administration.  (Tierney L. Cross/Bloomberg via Getty Images / Getty Images)

With Tillis placing a hold on Warsh’s nomination, forcing it out of committee would require a discharge vote on the Senate floor — a maneuver that needs 60 votes and appears unlikely in a closely divided chamber.

Regardless of the timing of Warsh’s confirmation, Miran’s early remarks signal how the Fed’s policymaking framework and its dynamic with the White House could shift in the months ahead.

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: The information in this article is intended for general informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. The views expressed are solely those of the author, based on independent research, analysis, and professional experience. Although the author is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and owner of Ashcroft Green Advisors, a fee-only registered investment advisory firm, the content may not be suitable for your individual financial situation, objectives, or risk tolerance. Readers should consult with a qualified financial professional before making any decisions based on this material.
The author and/or clients of Ashcroft Green Advisors may hold positions in securities discussed in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.