These Two Appointments Could Reshape America's Economy, And Trump Is Ready To Start His 'Power Play' 

Trump is set to announce new appointments for Federal Reserve governor and Bureau of Labor Statistics (BLS) commissioner in the coming days, two key nominations that could reshape the economic policy agenda for the remainder of his term.  

Trump told reporters on Sunday as he left New Jersey for Washington that he would select a new Federal Reserve governor "in the next few days" and announce a new BLS commissioner within three to four days.  

Federal Reserve Governor Adriana Kugler unexpectedly announced her resignation on Friday, creating an opportunity for Trump to lay the groundwork for the next Fed chair earlier than expected. Meanwhile, after weak nonfarm payroll data was released, Trump fired BLS Commissioner Erika McEntarfer on Friday.  

Kugler's resignation allows Trump to install a governor more aligned with his preference for interest rate cuts sooner than anticipated. Current leading candidates include White House National Economic Council Director Kevin Hassett, Stanford University's Hoover Institution fellow Kevin Warsh, and Treasury Secretary Scott Bessent.  

Both appointments require Senate confirmation but could provide Trump with a strategic advantage in positioning a successor before Chair Jerome Powell's term expires in May 2026.  

Governor Vacancy Paves the Way for Chair Race  

Kugler, who has served as a governor since September 2023, was originally scheduled to remain in office until January 31, 2026. Analysts believe the vacancy allows Trump to appoint a governor more supportive of his rate-cut policies.  

Under Federal Reserve rules, the chair must also be a sitting member of the board. Powell's term as chair ends in May 2026, but his governor term runs until January 2028. If Powell chooses to remain as a governor after stepping down as chair, Trump's choice for the next chair would be limited to existing governors.

By filling Kugler's seat, Trump can ensure his preferred successor is already qualified for future chair nomination, avoiding constraints posed by Powell's decision to stay or leave. This strategic move significantly accelerates the timeline for the next chair selection.

Fed Independence Under Unprecedented Pressure  

Trump's public pressure on the Federal Reserve has reached unprecedented levels. He has repeatedly attacked Powell personally, calling him a "fool" and demanding his resignation. On social media, Trump labeled Powell "too angry, too stupid, too political."  

This week, the Fed experienced its first split decision since 1993, with two sitting governors dissenting. Current Governor Christopher Waller was among the dissenters. Waller, seen as a potential chair candidate, argued for a 25-basis-point rate cut during the meeting.  

Powell has yet to decide whether he will remain as a governor after his term ends. If he chooses to stay until 2028, it could block another governor appointment by Trump. Apart from Kugler, none of the other five governors' terms will expire during Trump's potential second term.  

BLS Leadership Shakeup Sparks Controversy  

Trump's decision to fire BLS Commissioner McEntarfer has drawn widespread criticism. McEntarfer was confirmed in January 2024 by an 86-8 bipartisan Senate vote, with support from several Republicans, including current Vice President JD Vance.  

Trump claimed without evidence that McEntarfer manipulated key economic data. White House National Economic Council Director Hassett defended the decision, stating the BLS needed "fresh blood" because excessive data revisions had undermined reliability.  

Last Friday's nonfarm payroll report showed U.S. job growth in July plummeted to 73,000, the lowest in nine months. Data for May and June were sharply revised downward, with May's figures cut by 125,000 and June's by 133,000. Combined, the revisions reduced May and June job growth by 258,000. Over the past three months, average job growth was just 35,000—the worst since the COVID-19 pandemic.  

William Beach, who served as BLS commissioner during Trump's first term, criticized the firing as "destructive," stating there was no justification for the dismissal and that it undermined the credibility of the statistical system. The agency is responsible for releasing critical employment data that influences the pricing of trillions of dollars in global assets.