President Donald Trump is expected to soon announce a replacement for Fed member Adriana Kugler, paving the way for restructuring the Permanent Council towards supporting low interest rate policies. This move could have far-reaching implications for U.S. monetary policy and financial markets in 2025.
🔍 Key Highlights:
Adriana Kugler resigns early (January) → creates opportunity for new appointment
Trump prioritizes "dove" candidates to promote interest rate cuts
The successor could become a candidate to replace Powell when his term ends in May
📉 Market Impact:
Trump's early intervention in the Fed's operations helps reshape monetary policy, especially in the context of persistent inflation and unstable economic growth. A Fed member leaning towards easing could:
Increase the likelihood of interest rate cuts
Support growth and the labor market
Reduce borrowing costs, stimulate consumption and investment
🧭 Scenario for Powell's succession
If Trump is re-elected, the new personnel nominated this week could become the next Fed Chair – playing a key role in shaping monetary trends post-2025.