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Trump to Reshape U.S. Economic Institutions with New Fed and BLS Appointments

Prime Highlights

  • Trump to appoint new Federal Reserve governor and Bureau of Labor Statistics (BLS) head.
  • Mass dismissals and resignations trigger politicization of economic data fear.

Key Facts

  • Trump dismissed BLS commissioner Erika McEntarfer following a dismal jobs report.
  • He will appoint a new Fed governor following Adriana Kugler’s unexpected resignation.

Key Background

In a bold bid to take charge of America’s most important economic institutions, Donald Trump has laid out plans to appoint a new leader of the Bureau of Labor Statistics (BLS) and fill an unexpected gap on the Federal Reserve Board. This came after a surprise bid to oust BLS Commissioner Erika McEntarfer following the release of a disappointing jobs report. Trump was displeased with the jobs figures and blamed the bureau for reporting “ridiculous” numbers without offering proof to back them up.

McEntarfer’s dismissal has concerned economists and ex-governors about the autonomy of economic statistics agencies. The BLS is a world leader for job and inflation data. Its monthly releases have a big influence on U.S. monetary policy and market expectations. Replacing its head in the name of controversies over data threatens to erode trust in the impartiality of economic information.

At the same time, the Federal Reserve Board has already been robbed of the first resignation of Governor Adriana Kugler, leaving five months before her term was to end. Trump is given the opportunity in this unexpected resignation to make the ideological composition of the Fed different. Trump is considering names such as Kevin Hassett, Kevin Warsh, and Treasury Secretary Scott Bessent—all of whom are more hawkish in lowering interest rates.

These Senate-confirmed nominees come amid Trump’s growing criticism of Federal Reserve Chairman Jay Powell. Trump has criticized Powell as a “knucklehead” for failing to lower rates more rapidly. With only one board seat open during his projected second term, the current window is crucial for Trump to be able to influence central bank policy long before the next Fed chair nomination in 2026.

Both Fed and BLS moves are components of a grand plan to rewrite the economic story of America—and seize financial levers prior to the next possible Trump presidency.

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