Reports indicate that President Trump is considering four individuals to replace Federal Reserve Board member Adriana Kugler, who will resign effective Friday.
According to a Reuters report on Thursday, Trump is weighing economic adviser Kevin Hassett, former Federal Reserve governor Kevin Walsh, and two others to fill Kugler's position before the weekend. Whoever Trump nominates will have significant influence on national monetary policy, including federal interest rates, as long as they are confirmed by the Senate.
Hassett, as Director of the National Economic Council, disclosed in June that he held between $1 million and $5 million in Coinbase stock. Walsh served as a Federal Reserve governor from 2006 to 2011 and believes that blockchain technology could enhance the U.S. central bank's payment systems.
Kugler resigned on August 1 without specifying a reason.
Do Federal Reserve interest rates affect the U.S. markets, including digital assets?
Trump has had disagreements with Federal Reserve Chair Powell, whom he nominated for the position during his first term. Trump has consistently questioned the Fed's independence in setting federal interest rates.
Many legal experts suggest that Trump does not have the authority to dismiss Powell without cause, even though a Supreme Court decision has expanded presidential power over independent agencies, supporting Trump's decision to remove members of the National Labor Relations Board and the Competition System Protection Board.
