Last week, the Federal Reserve announced its decision to keep interest rates unchanged amid pressure from President Donald Trump.
Fed's Interest Rate Decision
The monetary policy of the Federal Reserve continues to be in the spotlight. In its recent meeting, the interest rate was forecasted to be kept unchanged. Fed Chairman Jerome Powell and other committee members, except for two, have been cautious about potential rate cuts.
Adriana Kugler's Resignation
The Federal Reserve announced the unexpected resignation of Adriana Kugler from her position. Kugler will leave the central bank on August 8 and will return to Georgetown University as a professor. Her decision was sudden and provides Trump the opportunity to appoint a candidate for the Fed chair before Kugler's term expires next year.
Trump's Reaction and Analysts' Insights
Following the announcement of her resignation, Trump expressed his satisfaction, emphasizing the need to rethink interest rates. He also mentioned that Kugler knew Powell was wrong in his decisions regarding rates, which may have influenced her choice. Derek Tang, an analyst from the research firm LH Meyer, noted that Kugler's resignation could be a strategic move urging Trump to reconsider his pressure on the Fed.
Adriana Kugler's resignation creates new conditions for the Federal Reserve and opens up possibilities for potential appointments by President Trump. These events highlight the ongoing tension between political power and monetary policy.
