Unexpected Shake-Up at the Fed: Adriana Kugler Resigns!
Adriana D. Kugler, a member of the Federal Reserve Board of Governors, has resigned. As President Donald Trump continues to undermine the long-standing tradition of Fed independence, she is leaving at a very delicate time for the US central bank.
The Fed announced in a statement on Friday that Kugler’s departure will become effective on August 8. The central bank stated she intends to return to her academic position at Georgetown University, although she did not give a particular explanation for her resignation. January was supposed to mark the end of her term.
It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System. I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.
Kugler
Kugler’s Resignation Opens the Way for Trump to Shape Monetary Policy
Kugler’s retirement is especially noteworthy because she is a voting member of the 12-member Federal Open Market Committee (FOMC), which determines interest rates in the United States. Days before her resignation was made public, the FOMC decided to maintain interest rates unchanged at its July policy meeting. By doing this, the central bank refrained from giving a clear indication of when the rate reduction will start up again. Trump now has the chance to name a replacement for Kugler, who has left.
“Maybe I Should Run the Fed Myself,” Trump Jokes Amid Powell Criticism
The US central bank is currently experiencing increased strain, which coincides with Kugler’s retirement. The future of Fed Chair Jerome Powell is in doubt as Trump ratchets up his assaults on the institution’s autonomy. Accusing Powell of mishandling monetary policy and burdening the federal government with billions of dollars in additional borrowing costs, Trump and his supporters have stepped up their efforts in recent months to pressure Congress to remove Powell.
We have a man who just refuses to lower the Fed rate. Maybe I should go to the Fed. Am I allowed to appoint myself?
Trump
Trump criticized Powell on Truth Social once more on Thursday, this time for the Fed’s decision to maintain rates at its most recent policy meeting.
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