Federal Reserve Governor Kugler’s Unexpected Resignation May Accelerate Trump’s Selection of the Next Fed Chair
ChainCatcher reports, citing Jintou, that Federal Reserve Governor Kugler unexpectedly announced her resignation on Friday, giving U.S. President Trump an earlier-than-expected opportunity to fill the Fed vacancy and potentially forcing him to finalize his pick for the next chair months ahead of schedule.
Derek Tang, an economist at monetary policy analysis firm LH Meyer, stated, "Now the ball is in Trump's court. Trump has been pressuring the Fed, claiming he wants to install his own people. Now the opportunity has arrived."
Although Powell's term as chair ends in May next year, his term as governor continues until 2028. If Powell does not voluntarily resign as governor, Trump will have no further opportunity to fill the vacancy before 2028.
In this scenario, Trump may be forced to fill Kugler's vacancy with his intended chair nominee. Tobin Marcus, head of U.S. policy and political strategy at Wolfe Research, pointed out, "The key is that this is the only actionable vacancy for Trump. If he wants to select the next chair from outside the Fed, the nomination may be announced ahead of schedule."
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