UPDATE: President Donald Trump announced today that he will name a new Federal Reserve governor and a commissioner for the Bureau of Labor Statistics (BLS) within the next few days. This announcement comes amid significant scrutiny of the Federal Reserve and evolving job market data.
During a press briefing on Sunday, Trump confirmed the urgency of the appointments following Adriana Kugler‘s unexpected resignation from the Federal Reserve on Friday. Kugler, who had been appointed by former President Joe Biden in September 2023, was set to remain until January 2026. Trump stated, “She left early…I think she agreed with me on interest rates, and yet they were on the other side of the ballpark. So I’ll be announcing that probably over the next couple of days.”
This sudden shift allows Trump to reshape the Federal Reserve, which currently consists of a board that includes three members he appointed during his first term: Jerome Powell, Christopher Waller, and Michelle Bowman. Trump has been vocal about his discontent with Powell, urging a decrease in interest rates while Powell remains steadfast in his position.
In tandem with the Fed appointment, Trump is also replacing the BLS commissioner, Erika McEntarfer, who was terminated last Friday after the release of disappointing job figures. The BLS adjusted nonfarm payroll employment downward by 125,000 for May and 133,000 for June, which Trump criticized as “ridiculous” and indicative of a “scam.”
Trump remarked, “We had no confidence. The numbers were ridiculous…Just before the election, this woman came out with these phenomenal numbers on Biden’s economy…And then right after the election, they announced that those numbers were wrong.”
In a follow-up interview, Kevin Hassett, director of the White House National Economic Council, addressed concerns regarding the job data. He emphasized that Trump’s aim is to ensure the transparency and reliability of labor statistics. “The president wants his own people there so that when we see the numbers, they’re more transparent and more reliable,” Hassett stated.
The potential impact of these appointments is immense, as they could influence economic policy and public confidence leading into the upcoming months. With revisions to job figures expected, the next BLS report in September may provide further insights into the accuracy of employment data.
As these developments unfold, markets and observers will be keenly watching to see how Trump’s selections will reshape economic strategy and the labor landscape in the United States. Stay tuned for announcements regarding the new appointments, as they are likely to have far-reaching implications.
