President Donald Trump, who intends to weigh the monetary policy decisions, on the occasion of taking a new person to the committee that establishes interest rates after the surprise resignation of a FED governor on Friday, August 1.
Adriana Kugler’s mandate, appointed in 2023 for this position on the initiative of President Joe Biden, was executed until the end of January 2026. His resignation will be effective as of August 8.
Neither the press release nor his email to Donald Trump give the reasons for his early departure. Requested by AFP, the Fed did not want to say more. Earlier this week, Adriana Kugler could not participate in the Fed monetary policy meeting (FOMC) or vote on interest rates. A spokesman from the Central Bank reported that it was for a “personal reason.”
On Friday, when he went to a weekend in his golf in New Jersey, President Donald Trump said he was “very happy” of this publication after the holidays.
The Republican billionaire, who constantly claims the rate, has the opportunity to bring before the expected of a new head inside the FOMC, which will have the right to vote in twelve.
Now you can propose a candidate whose appointment must be confirmed by the Senate where his party is the majority.
Great pressure on Powell
The announcement comes in a complicated period for the Fed, whose president Jerome Powell is continuously pressed by Donald Trump. The latter claims a drop in the rate that in particular would have the effect of lighten the debt load.
The institution also begins to experience dissensions in the monetary policy that will be carried out, while the economy is shaken by the protectionist offensive of the US Executive.
Unemployment is growing slightly and growth tends to grind. The publication of poor indicators, played by Donald Trump, who returned a statistical service manager, left the dollar on Friday.
The last monetary meeting of the Fed ended with maintenance of rates at its current level. It is assumed that Jerome Powell will preside over the Fed until May 2026. In theory, he can remain there as a simple governor until January 2028.
But Donald Trump is trying to accelerate his departure, hoping to place a person with a person who shares his views.
Jerome Powell once again defended the independence of the institution this week, in the name of the “general interest” and to avoid political leaders “acts on the rates for electoral purposes, for example.”
Source: BFM TV
