Federal Reserve Governor Stephen Milan formally submitted his resignation on Thursday, announcing he will step down from his position on the Board of Governors.
Milan assumed the role in September of last year, succeeding then-Governor Kugler. Kugler had resigned abruptly in August 2025, and Milan filled the remainder of the unexpired term. Within 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 the brief tenure as the highest honor of his life and expressed confidence in his successor. Wash was confirmed by the U.S. Senate on Wednesday to officially assume the role of Federal Reserve Chair. Prior to joining the Fed, Milan had served as Chairman of the Council of Economic Advisers.
Milan wrote in the letter: "Looking ahead, I am encouraged by incoming Chair Kevin Wash and the potential changes the Federal Reserve may pursue in areas such as communications policy and balance sheet policy. I also look forward to the Fed returning to its core responsibilities and steering clear of political and cultural controversies."
Milan has consistently advocated for interest rate cuts. He voted against all three of the FOMC's 0.25 percentage point rate cut decisions approved in 2025. This year, facing three decisions to hold rates steady, he again dissented, instead supporting a 25 basis point rate cut.
Furthermore, Milan stated he has consistently pushed for the Federal Reserve to adopt a more forward-looking approach to monetary policy. He believes the Fed needs to better incorporate non-monetary factors and their impact on policy into its considerations.
Milan also expressed support for a series of recent Fed initiatives aimed at lowering bank regulatory thresholds. He led related research exploring how the Federal Reserve should reduce the size of its balance sheet and its asset holdings, which total approximately $6.7 trillion.
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