Trump to Name New Fed Governor After Kugler Resigns; BLS Head is Fired

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News on the resignation of a Federal Reserve governor and the dismissal of the BLS Commissioner.
  • Trump plans to announce a new Federal Reserve governor after Adriana Kugler’s resignation effective August 8.
  • Erika McEntarfer’s removal as BLS head followed disputes over jobs data, drawing criticism from former officials.
  • Both appointments will influence U.S. monetary policy, labor data reporting, and market sentiment ahead of Powell’s term end in 2026.

President Donald Trump is preparing to name a new Federal Reserve governor, a major shake-up that comes as his administration also fired the head of the Bureau of Labor Statistics (BLS), Erika McEntarfer, last week. The moves signal a clear intent to exert more direct influence over U.S. monetary policy and economic reporting.

The first major change is at the Fed, where Governor Adriana Kugler has announced her resignation, effective August 8. In a letter to the White House, Kugler, who was appointed in 2023, confirmed she would be leaving her post early.

President Trump stated he will reveal her replacement “over the next couple of days,” with candidates rumored to include Kevin Hassett, Kevin Warsh, and Scott Bessent, all known for their alignment with Trump’s preference for lower interest rates.

This appointment is a critical one, set to shift the balance on the Federal Reserve Board well ahead of Chair Jerome Powell’s term ending in May 2026. While Powell could remain as a governor until 2028, Trump’s new choice will begin to influence monetary policy much sooner, and markets are watching closely.

BLS Commissioner Removed After Jobs Report Dispute

In a separate move, Trump also dismissed Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer last week. The dismissal comes shortly after the release of a weak July jobs report and significant downward revisions to earlier employment data. Trump criticized the figures and said they undermined confidence in labor statistics. He pledged to appoint a new commissioner within “three to four days.”

Related: U.S. Jobs Report Miss: Payrolls Up 73K, Fed Cut Bets Rise, Bitcoin Reacts

The decision drew criticism from former officials, including ex-BLS head William Beach and former Treasury Secretary Larry Summers, who labeled the move “groundless” and a risk to data independence. Trump defended his action by arguing that Americans “need to trust the numbers.”

Market and Policy Implications

These changes arrive as investors evaluate how Trump’s appointments may shape economic policy. Treasury yields and the U.S. dollar fell following news of Kugler’s resignation and McEntarfer’s removal.

Related: Trump’s Attack on the Federal Reserve Creates New Uncertainty for Crypto Markets

Both the Fed and BLS appointments require Senate confirmation. The Federal Reserve appointment will directly impact interest rate debates, while the BLS leadership change could influence the methodology behind key economic indicators. 

The selections, expected later this week, will be a clear signal of the administration’s economic priorities as it looks to address inflation, employment, and interest rate policy for the remainder of the year.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.


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