Kugler's surprise resignation could speed up Trump's selection of the next Fed chairman
PANews reported on August 2nd that according to Jinshi, Federal Reserve Board Governor Kugler's sudden resignation on Friday presents US President Trump with an opportunity to fill the Fed vacancy earlier than expected, potentially forcing him to finalize his next chairmanship months in advance. Derek Tang, an economist at the monetary policy analysis firm LH Meyer, said, "The ball is now in Trump's court. He has been pressuring the Fed to install his own candidate. Now is his chance." While Powell's term as chairman ends in May of next year, his term as a Fed board member runs until 2028. If Powell doesn't voluntarily resign as a board member, Trump won't have another opportunity to fill the vacancy before 2028. In this scenario, Trump might be forced to replace Kugler's seat with a candidate he might promote as chairman. Tobin Marcus, head of US policy and political strategy at Wolfe Research, noted, "The key is that this is the only vacancy Trump can fill. If he wants to find the next Fed chair from outside, the nomination could be announced earlier."
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