Trump: New Fed governor probably temporary then permanent

Trump: New Fed governor probably temporary then permanent

President Donald Trump is expected to announce a replacement for outgoing Federal Reserve Governor Adriana Kugler by the end of the week, following her resignation. This move creates an opportunity for Trump to reshape the Fed's Board of Governors and signals a broader shift in leadership as the administration prepares for future changes, including the impending end of Jerome Powell's term as Fed Chair in May 2026 [1][4][7].

Kugler's departure, praised by Powell, opens a seat on the Fed's Board of Governors. Trump has reportedly narrowed his list of potential Fed Chair candidates to four individuals, with Kevin Hassett and Kevin Warsh being 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.

References:

[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
[3] CNN - https://www.cnn.com/2025/08/06/business/federal-reserve-trump-pick
[4] The Daily Signal - https://www.dailysignal.com/2025/08/05/trump-settle-new-fed-governor-end-week/
[5] Bloomberg Law - https://news.bloomberglaw.com/banking-law/trump-advisers-push-for-temporary-fed-governor-to-fill-open-seat
[7] Anadolu - https://www.aa.com.tr/en/americas/trump-says-he-will-decide-on-fed-governor-s-replacement-by-end-of-week/3651565
[8] Marketscreener - https://www.marketscreener.com/news/trump-says-he-ll-announce-fed-governor-replacement-by-end-of-the-week-ce7c5ed8d08cf22c