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| President Donald Trump said on Sunday that he will announce a new Federal Reserve governor and Bureau of Labor Statistics commissioner over the next few days. Anna Moneymaker via Getty Images |
President Donald Trump announced that he will soon appoint two key figures closely watched by Wall Street: a new governor to the Federal Reserve Board and a new commissioner to lead the Bureau of Labor Statistics (BLS). The move comes as Trump deepens his influence over U.S. economic institutions heading into the second half of his term, signaling major shifts in monetary policy and federal labor reporting.
Trump made the announcement during a press briefing on Sunday when asked about the abrupt resignation of Federal Reserve Governor Adriana Kugler, who will step down this week despite her term running until January 2026. Trump suggested that Kugler's early departure was tied to disagreements within the Fed over interest rate policy. “She left early, and I think she left because she agreed with me on interest rates, and yet they were on the other side of the ballpark,” Trump told reporters. “I’ll be announcing that probably over the next couple of days.”
Kugler, a former Biden appointee, joined the Fed Board in September 2023, filling the remainder of Lael Brainard’s term after Brainard left to lead the National Economic Council. Her exit underscores ongoing internal tensions at the Fed as it navigates conflicting political pressures and a volatile economic landscape.
Trump Moves to Reshape the Fed
With Kugler’s seat now vacant, Trump has a new opportunity to shape the direction of the Federal Reserve Board. The Board comprises seven members, and Trump already installed two governors during his first term: Christopher Waller and Michelle Bowman. Both have aligned with Trump’s economic agenda, and notably, they dissented in the Federal Open Markets Committee’s latest decision to hold interest rates steady a sign that hawkish views may continue to clash with Trump’s push for rate cuts.
Trump has repeatedly clashed with current Fed Chair Jerome Powell, whom he has publicly berated, calling him a “major loser” and demanding immediate rate reductions. Though Powell has resisted political pressure and insists on Fed independence, Trump’s new appointment could shift the balance of power on the Board ahead of critical monetary decisions expected later this year.
Trump Fires BLS Commissioner Over Jobs Report
In a separate but related development, Trump confirmed that he fired BLS Commissioner Erika McEntarfer last week following the release of a weaker-than-expected July jobs report. The BLS also revised May and June employment figures downward, fueling criticism from Trump and his economic advisors. “We had no confidence,” Trump said on Sunday. “The numbers were ridiculous, what she announced.”
McEntarfer had been appointed by President Joe Biden in January 2024. Her tenure lasted less than seven months before the Trump administration dismissed her, citing a lack of confidence in the accuracy and transparency of the data. Trump accused the agency of manipulating employment figures, saying, “It’s a scam in my opinion.” He specifically pointed to what he claimed were artificially strong job numbers released before the 2024 election that were later revised downward after votes had been cast.
The Bureau of Labor Statistics, which routinely updates preliminary data based on new information, acknowledged that the latest downward revisions were “larger than normal.” The BLS reduced nonfarm payroll estimates by 125,000 for May and by 133,000 for June. Trump used this as justification for replacing McEntarfer, telling reporters he would name a new commissioner “over the next three or four days.”
Political Pressure Meets Data Transparency
Trump’s economic team defended the decision to remove McEntarfer, arguing that it was about restoring confidence in federal data rather than retaliating against poor economic reports. Kevin Hassett, now leading the White House National Economic Council, said on NBC’s Meet the Press that transparency is a top priority. “The president wants his own people there so that when we see the numbers, they’re more transparent and more reliable,” Hassett said.
He emphasized the need for accountability in labor statistics, especially as larger revisions become more common. “If there are big changes and big revisions we expect more big revisions for the jobs data in September, for example then we want to know why. We want people to explain it to us,” Hassett added.
A Shift in Economic Governance
Trump’s upcoming appointments to both the Federal Reserve and the BLS could mark a turning point in how federal economic policy is implemented. With inflation easing but growth slowing, and markets still absorbing the implications of Trump’s tariff-heavy trade policies, these leadership changes could reshape investor expectations and policy direction in the months ahead.
While the White House has not commented on potential successors, insiders speculate that Trump is likely to nominate individuals aligned with his pro-growth, anti-regulation stance especially those who support aggressive interest rate cuts and a skeptical view of official government statistics.
The next several days will reveal who Trump chooses to fill these influential roles decisions that could have lasting implications for financial markets, labor data credibility, and the Federal Reserve’s independence.
