Trump demands that Powell resign while fed Governor Adriana Kugler decreases: '... did the wrong thing ...' | Today news

In a major stir at the US Federal Reserve, Governor Adriana Kugler resigned from her position in the Central Bank’s board of directors and offers former President Donald Trump an important opportunity to reform the monetary policy before the transition of the federal reserve of 2026. Kugler, the first Spanish policy maker to sit in the Fed’s Council of Governors, filed her resignation letter on Friday, August 8. Her early departure – her term would expire in January 2026 – coincided with renewed attacks by Trump on Fed chairman Jerome Powell, who he nominated as “too late” in a truth social post. Trump repeats the calls for the resignation of Jerome Powell, Donald Trump, wasted no time to utilize the exit of Adriana Kugler to promote his ongoing campaign against Jerome Powell. ‘Too late Powell has to resign, just like Adriana Kugler,’ Trump wrote and falsely implied that Adriana Kugler resigned in protest of Powell’s stance on interest rates. “She knew he was doing the wrong thing. He must also resign! ‘ While Adriana Kugler’s letter of resignation did not mention Powell or disagreements about monetary policy, Donald Trump and his allies increasingly accused the central bank of hampering economic growth by maintaining increased interest rates. The US president told reporters on Friday: ‘I am very pleased that there is now an opening. She clearly disagreed with “too late” on rates. ” Adriana Kugler maintained support for the current Fed policy as opposed to the demands of Donald Trump, Adriana Kugler did not publicly opposed Jerome Powell’s monetary policy. In her most recent speech on July 17, she advocated that she had been “interest rates” for some time, referring to a stable labor market and a recent increase in inflation in goods. Earlier this week, she was absent from the Fed’s policy meeting, with officials attributing her to a ‘personal case’. In her resignation letter addressed to US President Donald Trump, Kugler said: “It was an honor of a lifetime to serve in the Council of Governors of the Federal Reserve system … I am especially honored to serve in a critical time to reach our double mandate to lower prices and keep a strong and resilient labor market.” Market response: Treasuries Rally, traders bet on the rate reduction of Adriana Kugler’s departure, accompanied by soft US work data, has caused a rally in US treasury. Returns on two years Note-the most sensitive to monetary policy-has dropped by as much as 29 basis points, which have been the steepest decline since December 2023, according to the Bloomberg report. The Bloomberg Dollar Spot Index also tumbled nearly 0.9%, as traders fully priced in two quarter-point rate cuts by the end of 2025. The first cut is now seen as a 90% probability to take place at the Fed’s next policy meeting. Trump looks at the leadership of New Fed before Powell’s exit of Powell’s exit Adriana Kugler’s exit, adds a layer of complexity to the future leadership of the central bank. Jerome Powell’s term as Fed chairman ended in May 2026, and Donald Trump was able to install a successor that matched his view on monetary relief. Treasury Secretary Scott Besent suggested that the administration could first nominate someone to fill Kugler’s vacancy, and then later elevate the appointment to chairman. Among those considered is the National Director of Economic Council, Kevin Hassett, former governor Kevin Warsh, current governor Christopher Waller and Besent himself. Adriana Kugler returns to Academia Adriana Kugler was appointed to the Fed in September 2023 and fulfilled a long -standing democratic priority to improve the Spanish representation within the central bank. Before joining the Fed, she served as the US Executive Director of the World Bank and held roles in the Obama administration, including chief economist at the US Department of Labor. Adriana Kugler will return to her academic position as a professor at Georgetown University after August 8.