Trump to Announce Fed Governor Replacement by Week’s End Amid Leadership Shift

President Donald Trump is expected to announce a replacement for outgoing Federal Reserve Governor Adriana Kugler by the end of the week, following her unexpected resignation, which becomes official on August 8, 2025 [1][4][7]. The move creates an opening for Trump to reshape the composition of the Fed’s Board of Governors and signals a broader shift in leadership as the administration prepares for potential future changes, including the impending end of Jerome Powell’s term as Fed Chair in May 2026 [3][8].

Kugler’s departure was praised by Powell, who acknowledged her valuable contributions and academic insights during her tenure on the Board [3]. Trump, while calling her exit a “pleasant surprise,” also suggested that the new appointee could emerge as a candidate for the Fed Chair role [3][8]. This comes amid ongoing public criticism from the president of Powell’s handling of monetary policy, including his timing on interest rate cuts and the management of the Fed’s large-scale renovation project [3][5].

Trump has reportedly narrowed the list of potential Fed Chair candidates to four individuals, with Kevin Hassett and Kevin Warsh being the two publicly identified names so far [3][5]. Both have expressed support for lower interest rates, aligning with the administration’s economic priorities. Hassett, a former chairman of the Council of Economic Advisers, has been a key economic advisor to the president, while Warsh, a former Fed Governor, has advocated for a restructured agreement between the Treasury and the Fed [5]. Trump has not ruled out naming a temporary replacement for Kugler rather than a permanent one, though he remains undecided [3][8].

The timing of the announcement has generated considerable speculation, particularly given the president’s increasing public pressure on the Fed. Some analysts have warned that continued political influence could risk undermining the Fed’s independence and create uncertainty in financial markets [3]. However, Trump has repeatedly emphasized the need for the central bank to align more closely with the administration’s economic goals, particularly in reducing borrowing costs to support growth [5].

In addition to the Fed appointment, Trump is also expected to name a new Bureau of Labor Statistics commissioner, underscoring his broader strategy to consolidate key economic policymaking roles [2][7]. These moves reflect a deliberate effort to reinforce the administration’s influence over the economic leadership structure as it enters the final stages of its term.

“I’ll be making that decision before the end of the week,” Trump said on Tuesday, underscoring the urgency of the appointments [3]. The outcome could have implications not only for the Fed’s immediate policy direction but also for the broader economic landscape in the coming months.

Sources:

[1] Yahoo - https://finance.yahoo.com/news/trump-says-decide-fed-governor-210820374.html

[2] KCRA - https://www.kcra.com/article/trump-narrows-fed-chair-candidates/65605948

[4] The Daily Signal - https://www.dailysignal.com/2025/08/05/trump-settle-new-fed-governor-end-week/

[8] Anadolu - https://www.aa.com.tr/en/americas/trump-says-he-will-decide-on-fed-governor-s-replacement-by-end-of-week/3651565