U.S. President Donald Trump has announced significant changes within the Federal Reserve, including upcoming appointments and potential resignations.
Kugler's Departure
Fed Governor Adriana Kugler will resign this Friday, well ahead of her original term ending in January 2026. Kugler, who joined the Fed in September 2023, plans to return to teaching at Georgetown University this fall.
Who Could Be the Next Fed Chair?
Trump confirmed he is considering four potential candidates to replace Kugler. He named Kevin Hassett and Kevin Warsh as top contenders, describing them as 'very good' options. Fed Governor Christopher Waller may also be in the mix, though his stance on rate cuts may not align with Trump's.
Can Trump Fire Powell?
Trump has previously hinted at firing Powell, but he does not have the authority to remove the Fed Chair based solely on policy disagreements. Under the Federal Reserve Act, a president can only remove a board member for 'cause'—serious misconduct, neglect of duty, or inefficiency. Following pushback from Wall Street leaders, Trump now claims he will not remove Powell before his term ends.
Trump continues eying transformations within the Federal Reserve and will need to take steps to appoint a new member. Attention is focused on potential candidates.
