Trump Ready to Replace Key US Economic Officials, What Will the Impact on the Market?
President Donald Trump stated that he will soon announce two important names to fill strategic positions: the Federal Reserve (Fed) Governor and the head of the Bureau of Labor Statistics (BLS). This announcement comes amid increasing political pressure on US economic institutions, after Trump openly criticized and fired officials who disagreed with his economic policies.
Trump fired BLS Head Erika McEntarfer just hours after the US jobs report showed disappointing results. This decision drew criticism for weakening the integrity of the supposedly independent statistical agency. Even William Beach, a former BLS head who was also appointed by Trump in the past, called the dismissal baseless and risked undermining confidence in official economic data.
On the other hand, the position of Fed Governor became available sooner than expected after Adriana Kugler resigned. Trump sees this as an opportunity to appoint someone more supportive of his policies, particularly regarding interest rate cuts. Several names have been mentioned as strong candidates, including Kevin Hassett, Kevin Warsh, Christopher Waller, and Treasury Secretary Scott Bessent.
Trump has openly disliked Fed Chairman Jerome Powell and frequently hurls harsh criticism. He called Powell "too angry, too stupid, and too political" for refusing to lower interest rates. Trump even called for Powell's resignation, indicating his intention to exert more control over the direction of US monetary policy.
Trump's increasingly aggressive stance against these economic institutions has raised concerns among market participants and observers. They believe the independence of institutions like the Fed and the BLS is crucial for maintaining economic stability and public trust. The appointment of these two new officials is considered crucial and will determine the direction of the US economy ahead of the upcoming election. (ayu)
Source: Newsmaker.id
