Kugler’s Unexpected Resignation May Accelerate Trump’s Selection of the Next Fed Chair

According to a report by Jinse Finance, Federal Reserve Governor Kugler unexpectedly announced his resignation on Friday, giving U.S. President Trump an earlier-than-expected opportunity to fill the Fed vacancy and potentially forcing him to finalize his pick for the next Fed Chair months ahead of schedule. Derek Tang, an economist at monetary policy analysis firm LH Meyer, stated, “Now the ball is in Trump’s court. Trump has been pressuring the Fed, claiming he wants to install his own people. Now the opportunity has arrived.” Although Powell’s term as Chair ends in May next year, his term as Governor continues until 2028. If Powell does not voluntarily resign as Governor, Trump will have no further chance to fill the vacancy before 2028. In this scenario, Trump may be compelled to use his intended Chair nominee to fill Kugler’s vacancy. Tobin Marcus, Head of U.S. Policy and Political Strategy at Wolfe Research, pointed out, “The key is that this is the only actionable vacancy available to Trump. If he wants to select the next Chair from outside the Fed, the nomination may be announced ahead of schedule.” (Jin10)