Central bank's chief resignation provides Trump with an opportunity during a volatile period: WSJ (Paraphrased)
The Federal Reserve, the central bank responsible for setting monetary policy and maintaining the stability of the U.S. economy, has a vacancy following the early resignation of Adriana Kugler, a Fed governor. Kugler's departure, effective August 8, 2025, was due to her decision to return to her role as a professor at Georgetown University [1][3].
This unexpected vacancy provides President Donald Trump with an opportunity to appoint a preferred candidate to fill one of the seven seats on the Fed's board. Trump has nominated Stephen Miran, the head of the Council of Economic Advisers, for the position [2].
Stephen Miran's nomination marks the first major move by President Trump to reshape the Federal Reserve in his second term. If confirmed, Miran would serve a 14-year term on the Fed and would be the third Trump appointee on the central bank [1].
Miran, a loyalist of President Trump, brings a background in economics and has worked closely with the president on economic policy [2]. However, his nomination has been met with criticism from some Democrats who argue that he lacks the necessary experience for the position [1].
The Senate Banking Committee will review Miran's nomination before it goes to the full Senate for a vote [2]. The confirmation process is expected to be contentious, given the political implications of the vacancy and the potential for a Trump appointee to influence Federal Reserve policy and potentially succeed Chair Jerome Powell when his term as chair concludes in May 2026 [1][2].
Sources:
[1] Associated Press. (2025, August 5). Trump nominates Stephen Miran to fill Fed vacancy. Retrieved from https://www.apnews.com/article/donald-trump-economy-federal-reserve-business-fed-government-and-politics-e42901c7d9244a7e0008205625e6b3a9
[2] New York Times. (2025, August 5). Trump Nominates Stephen Miran to Fill Fed Vacancy. Retrieved from https://www.nytimes.com/2025/08/05/business/economy/trump-miran-fed-vacancy.html
[3] Georgetown University. (2025, August 5). Adriana Kugler to Return to Georgetown University as Professor. Retrieved from https://www.georgetown.edu/news/adriana-kugler-to-return-to-georgetown-university-as-professor
The unexpected vacancy at the Federal Reserve presents President Donald Trump with the opportunity to appoint a favorable candidate, Stephen Miran, to one of the seven seats on the Fed's board, a move that signifies the first major shift in reshaping the Federal Reserve in Trump's second term. The Senate Banking Committee will review Miran's nomination, and if confirmed, he would serve a 14-year term, marking him as the third Trump appointee on the central bank, bringing his background in economics and close association with the president's economic policy to the position. However, Miran's nomination has faced criticism from some Democrats due to concerns over his alleged lack of experience for the position, causing the confirmation process to potentially be contentious, given the political stakes and the potential impact on Federal Reserve policy and succession of Chair Jerome Powell.
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