Federal Reserve Governor Stephen Milan formally submitted his resignation on Thursday, announcing he will step down from his position on the Fed's Board of Governors. Milan was appointed last September to succeed former Governor Adriana Kugler, who resigned abruptly in August 2025, filling the remainder of her unexpired term. On the Federal Open Market Committee (FOMC), Milan consistently played the role of a dissenter, casting a dissenting vote at each of the six meetings he attended since taking office. In his resignation letter, Milan described this brief tenure as the highest honor of his life and expressed confidence in Kevin Warsh. Warsh was confirmed by the U.S. Senate on Wednesday to officially become the Chair of the Federal Reserve. Prior to joining the Fed, Milan served as the Chair of the Council of Economic Advisers. Milan wrote in the letter: "Looking ahead, I am encouraged by the potential changes incoming Chair Kevin Warsh and the Fed may pursue in areas such as communications policy and balance sheet policy, and I look forward to the Fed refocusing on its core responsibilities, steering clear of political and cultural debates." Milan has consistently advocated for interest rate cuts. He voted against all three 25-basis-point rate cuts approved by the FOMC in 2025. This year, he also dissented on three decisions to hold rates steady, instead supporting a 25-basis-point rate cut. Furthermore, Milan stated that he has been pushing for the Fed to adopt a more forward-looking approach to monetary policy and believes the Fed needs to better incorporate non-monetary factors and their impact into its policy considerations. Milan also expressed support for a series of recent Fed initiatives aimed at lowering bank regulatory thresholds and led related research exploring how the Fed should reduce the size of its balance sheet and its $6.7 trillion asset holdings.
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