The next Federal Reserve Chair will be announced this week? Trump will fill the vacant board position in the "coming days."

Trump is expected to announce new nominees for the Federal Reserve Board and the Bureau of Labor Statistics in the coming days, two key appointments that could reshape his economic policy agenda for the remainder of his term. According to the Financial Times, Trump told reporters on Sunday, as he left New Jersey for Washington, that he would select a new Federal Reserve Board member "in the next few days" and announce a new Bureau of Labor Statistics director within three to four days. The unexpected resignation of Federal Reserve Board member Adriana Kugler last Friday created an opportunity for Trump to position his next nominee for Fed Chair ahead of schedule. Following the release of weak non-farm payroll data, Trump fired Bureau of Labor Statistics director Erika McEntarfer last Friday. Kugler's resignation allows Trump to appoint someone more aligned with his preference for interest rate cuts within the Federal Reserve sooner than expected. Current leading candidates include Kevin Hassett, director of the White House National Economic Council, Kevin Warsh from Stanford University's Hoover Institution, and Treasury Secretary Scott Bessen. Both appointments require Senate confirmation but may provide Trump with a strategic advantage in positioning successors before Chair Powell's term expires in May 2026. Board Vacancy Paves the Way for Chair Competition Kugler has served as a board member since September 2023, with a term set to end on January 31, 2026. Analysts believe that the vacancy gives Trump the opportunity to appoint a board member more aligned with his interest rate cut policies. According to regulations, the Federal Reserve Chair must also be a member of the board. Powell's term as chair will end in May 2026, but his board term continues until January 2028. If Powell chooses to remain on the board after stepping down as chair, Trump's options for chair nominees will be limited to current board members. By filling Kugler's seat, Trump can ensure that his preferred successor is eligible for future chair nominations, avoiding being constrained by Powell's decision to stay or leave. This strategic positioning will significantly advance the timeline for the competition for the next chair. Federal Reserve Independence Faces Unprecedented Pressure Trump's public pressure on the Federal Reserve has reached unprecedented levels. He has continuously attacked Powell personally, calling him an "idiot" and demanding his resignation. Trump referred to Powell on social media as "too angry, too stupid, and too political." The Federal Reserve recently experienced a split vote for the first time since 1993, with two board members voting against, one of whom is current board member Christopher Waller. Waller is also seen as a potential chair candidate, advocating for a 25 basis point rate cut during the meeting. Powell has not yet decided whether to continue serving on the board after his chair term ends. If he chooses to remain on the board until 2028, it could block another board appointment by Trump. Aside from Kugler, the terms of the other five board members will not expire during Trump's second term. Labor Statistics Bureau Personnel Shake-Up Sparks Controversy Trump's decision to fire Labor Statistics Bureau Director McEntarfer has sparked widespread criticism. McEntarfer was confirmed in January 2024 by a bipartisan Senate vote of 86-8, with several Republicans, including current Vice President JD Vance, voting in favor at the time. Trump claimed without evidence that McEntarfer manipulated key economic data. White House National Economic Council Director Hassett defended the decision, stating that the Labor Statistics Bureau needed "fresh blood" because the magnitude of data revisions had affected reliability. Last Friday's non-farm payroll data showed that the U.S. added only 73,000 non-farm jobs in July, the lowest figure in nine months. The data for May and June was significantly revised downward. May's non-farm job additions were revised down by 125,000, while June was revised down by 133,000. Following these revisions, the job additions for May and June decreased by 258,000. Over the past three months, non-farm employment has averaged only 35,000 new jobs, the worst since the COVID-19 pandemic. William Beach, the Labor Statistics Bureau Director during Trump's first term, criticized the firing decision as "destructive," stating that there was no justification for the dismissal and that it undermined the credibility of the statistical system. The agency is responsible for releasing key employment data that affects the pricing of trillions of dollars in global assets