Trump Fires BLS Commissioner, Kugler Resigns Is Powell the Next?

Trump Fires Spark Fed Shake-Up as Rate Cut Odds Jump to 80 Percent

In a week of high drama for U.S. monetary policy, President Donald Trump has taken bold steps that signal growing pressure on the Federal Reserve.

After Trump Fires the Bureau of Labor Statistics (BLS) Commissioner and responds to the surprise resignation of Fed Governor Adriana Kugler, all eyes are now on Fed Chair Jerome Powell. The big question: is Powell next?

Trump Fires BLS Commissioner Amid Weak Jobs Data

Trump Fires the BLS Commissioner at a critical time. 

• Just hours before, the BLS reported a major downward revision of U.S. job numbers showing that 258,000 fewer jobs were added than originally reported. 

• On top of that, July’s jobs number came in weak too. While that might sound like bad news, it actually helps Trump’s case.

• The Federal Reserve has clearly said it will only cut interest rates if inflation drops to 2% or if the labor market weakens. 

Source: The Kobeissi Letter

This revised jobs report signals that the labor market may be cooling down, increasing the chance of a rate cut. 

In fact, the odds of a rate cut in September jumped to more than 80%. Ironically, although Trump Fires the official responsible for this data, the numbers may actually push the Federal reserve to do what the president wants: cut rates.

Fed Governor Kugler Resigns, Trump Celebrates

Just after the Trump Fires incident, Fed Governor Adriana Kugler submitted her resignation from the Federal Reserve Board. He welcomed the move, saying he’s “happy” to fill the vacancy. Notably her Term was to end in January. 

Source: The Kobeissi Letter

This gives him a chance to install a new voice that could align more closely with his push for lower interest rates. The timing of her exit only adds to the speculation that the President is preparing to reshape the Central Bank from within.

Is Powell the Next Target?

With Trump Fires the BLS Commissioner, celebrating Kugler’s exit, and hammering Powell publicly, it’s clear he’s building pressure. In a recent post, 

He called Powell “Too Late,” “Too Political,” and “a Total Loser.” These attacks aren’t new but they’ve gotten louder. And now, with more influence over Fed appointments, the president may be aiming to force Powell’s resignation without firing him outright.