Trump Seeks Influence Over Fed with Resignation of Governor Kugler

Former President Trump has criticized Fed Chair Jerome Powell for not reducing interest rates quickly enough. He has suggested he would fire Powell, but current law protects him from mid-term removal.

Key Points:

Trump's frustration arises from the Fed’s slow response to disappointing labor reports, including only 73,000 jobs added in July.
The president cannot remove a sitting Fed chair before term completion, ensuring Fed independence.
Possible successors aligned with Trump's rate-cut views include Scott Bessent, Kevin Hassett, Kevin Warsh, and Christopher Waller.

Trump's recent actions, including dismissing the Bureau of Labor Statistics head and Kugler's resignation, indicate his intent to influence economic reporting and monetary policy. Markets are adjusting expectations for potential rate cuts in the near future.