Trump Eyes Fed Control After Kugler&rsquo;s Exit and Powell Row
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In a move that could alter the trajectory of US monetary policy, President Donald Trump is preparing to appoint a new <a title="US Federal Reserve" href="https://www.benefitnews24.com/international/fed-cuts-rates-amid-rising-inflation-concerns/3132" target="_blank" rel="noopener">Federal Reserve</a> governor, following the surprise resignation of Adriana Kugler. The White House has also confirmed that the president will name a new chief for the Bureau of Labor Statistics (BLS) in the coming days&mdash;both key roles with the potential to reinforce Trump&rsquo;s economic agenda.
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Kugler, who made history as the first Hispanic economist on the Fed&rsquo;s Board of Governors, will step down on August 8, nearly a year and a half before her term&rsquo;s scheduled conclusion. Her early exit offers Trump an opening to recast the central bank&rsquo;s ideological balance just as he intensifies pressure on Fed Chair Jerome Powell to cut interest rates.
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While Kugler cited no political friction in her departure, Trump wasted no time using her resignation to reignite his long-standing feud with Powell. In a pointed social media post, the president suggested Powell should follow Kugler out the door, claiming she had &ldquo;realised&rdquo; his policies were damaging&mdash;despite no public statement from Kugler supporting this view.
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Behind the scenes, the friction between the Fed and the White House has been simmering since Trump retook office in January. The president has repeatedly accused the Fed of stifling growth by maintaining elevated interest rates, even as inflation shows signs of moderation. Powell, however, has maintained a data-driven stance, resisting political pressure and emphasising the need for cautious evaluation of Trump&rsquo;s trade tariffs before making any rate cuts.
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Adding to the drama, Trump abruptly dismissed BLS Commissioner Erika McEntarfer on August 1, following a weaker-than-expected July jobs report. The data&mdash;showing just 73,000 new jobs, with sharp downward revisions to May and June&mdash;drew Trump&rsquo;s ire, who labelled the figures &ldquo;rigged&rdquo; without offering evidence. He has now promised to replace her with &ldquo;someone more competent,&rdquo; fuelling concerns over the politicisation of federal statistics.
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The dual vacancies have raised eyebrows in financial and policy circles. A Fed appointment offers Trump the chance to nominate someone closely aligned with his economic worldview&mdash;possibly even grooming a successor to Powell, whose term ends in May 2026. Names doing the rounds include Trump confidante Kevin Hassett, former Fed governor Kevin Warsh, and current board member Christopher Waller, known for dissenting in favour of rate cuts.
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At the BLS, the acting head William Wiatrowski will serve in the interim, but Trump&rsquo;s eventual pick could determine how economic data is collected, interpreted, and communicated&mdash;shaping public perception just as the president prepares for a tough mid-term election climate.
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While Trump frames these appointments as course correction, critics see them as overt attempts to align supposedly independent institutions with his political messaging. The coming weeks will test whether these vacancies will serve the economy&mdash;or the administration&rsquo;s narrative.
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Federal Reserve Governor Adriana Kugler (on left) and Fed Chair Jerome Powell (on right)

Trump eyes Fed, BLS shake-up after Kugler exits to steer economic data and interest policy

Trump’s Fed Shake-Up: Who’s Next and Why Now?

Trump eyes Fed, BLS shake-up after Kugler exits to steer economic data and interest policy

August 4, 2025 | 12:15 IST