- There will soon be a vacancy on the Federal Reserve.
- Federal Reserve Gov. Adriana Kugler said she would step down next week.
- It means that President Donald Trump will get to pick her replacement — pending Senate confirmation.
President Donald Trump has a new way to needle Federal Reserve Chair Jerome Powell. He just needs Senate Republicans to sign off.
On Friday, Federal Reserve Gov. Adriana Kugler announced that she would step down from her post, effective next week. This means Trump will get to name her replacement for the seven-member central bank.
"It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System," Kugler said in a statement. "I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market."
Trump has repeatedly criticized Powell over the central bank's refusal to cut interest rates thus far. His nominee could provide another voice pushing Powell to act. It's a delicate balance, though, as the central bank prizes its independence — it's why Fed governors serve 14-year terms.
All of this is likely to come to a head in a potentially raucous Senate confirmation fight. If Senate Republicans stick together, Trump could ram through his pick to replace Kugler without any Democratic support.
This is a developing story. Stay tuned for updates.
