Adriana Kugler, a director at the Federal Reserve System (Fed), which determines the United States' benchmark interest rates and monetary policy, suddenly resigned, raising expectations that Jerome Powell's successor could be named sooner than expected.
Powell's term lasts until May next year. However, President Donald Trump is pressuring him to resign, referring to him as "Too Late." In an interview with Newsmax on the 1st (local time), Trump noted that he does not intend to dismiss Powell, but on the same day, he made contradictory comments on Truth Social.
Trump claimed on Truth Social, "She (Kugler) resigned because she knew he (Powell) was wrong in his interest rate decisions," adding, "He should resign too."
Kugler's resignation has led to speculation that President Trump might appoint the next Fed chair at an earlier time. Bloomberg News reported that Trump could nominate Kugler's successor as a candidate for the next Fed chair.
It is customary for the Fed chair to step down from the board when their term (four years) ends. However, there are analyses suggesting that Powell may have a unique opportunity, as he still has a board member term remaining until 2028. Tobin Marcus, senior policy and politics analyst at Wolf Research, told Bloomberg, "Trump could expedite the selection process for the next chair through this vacancy."
Trump has said he is considering two to three candidates for the next Fed chair. Former White House National Economic Council chairman Kevin Hassett, Secretary of the Treasury Scott Bessent, and former Fed board member Kevin Warsh are among the names being discussed. Christopher Waller, a Fed board member appointed during Trump's first term, is also mentioned as a strong candidate.
The current Fed board consists of a total of seven members, including the chair. Among them, Trump-appointed Vice Chair Michelle Bowman and Waller advocated for an interest rate cut at last month's Federal Open Market Committee (FOMC) meeting. The other three board members, excluding the resigned Kugler and Powell, have more than six years left in their terms.