Adriana Kugler, a associate of the board of the US national Reserve, resigned prematurely, beginning the way for president Donald Trump to nominate her candidate. Her word was not due to expire until January, but she returns to Georgetown University, Washington. An earlier departure may strengthen Trump's influence on Fed policy and let Jerome H. Powell to be replaced as president. Trump has long criticized the current head of the Fed for not reducing interest rates.
Although Kugler's word was not due to expire until January, it returns to Washington University Georgetown. Her early departure opens the way for the appointment of a successor who could replace Jerome H. Powell as president of the national Reserve next year.
Trump has long criticized Powell, repeatedly attacking him on social media for not reducing interest rates. He late called the head of the Fed “a stubborn IDIOT” and stated that the national Reserve's board should “take control” if Powell refuses to reduce the debt costs.
Trump attacks head Fed
On Friday, he again suggested that Powell, who was called up by erstwhile president Joe Biden, should “retire”. Trump's administration besides criticized Powell for a $2.5 billion renovation of 2 office buildings.
The president himself has late personally visited the Fed headquarters. According to the «Washington Post», Trump's influence on interest rate policy can now be felt more strongly, as successor Kugler may argue Powell.
Fed independency Under Pressure
The paper stresses that Fed should be protected from political pressure, although it is the president who appoints 7 governors. Their candidacy approves the Senate.
According to the «HR», the next Fed president will face the hard task of uncovering a balance between independent monetary policy and the president's demands for lower interest rates, which may face a negative reaction from the financial markets. The list of possible candidates for the top position includes Kevin Hassett, Kevin Warsh and Christopher Waller, as well as Treasury Secretary Scott Bessent.
Early attempts to release
Trump had already considered having Powell released during his first term, but he was yet advised not to do so. Although governors are appointed for a 14-year term, earlier resignations are common.
Powell's word as president expires in May and Trump's candidate for Kugler's seat may possibly take the highest position in the national Reserve.
From fresh York City Andrzej Dobrowolski (PAP) Note: This article was edited utilizing Artificial Intelligence.
