Advisers to Donald Trump are reportedly encouraging him to nominate a temporary Federal Reserve governor to fill an upcoming vacancy on the central bank’s board. Sources familiar with the discussions indicate that appointing a governor to serve the remainder of the term, which expires in January 2026, would allow Trump more time to assess candidates for chairman when Jerome Powell’s term concludes in May of next year. Federal Reserve governor Adriana Kugler announced last week her intent to vacate her position on August 8.
The prospective short-term governor is expected to be someone already serving in the government and previously confirmed by the Senate for a federal role. Confirmation by the Senate is required, a process that typically takes months. However, it could be expedited if Trump urges lawmakers to act quickly. Trump is scheduled to meet with advisers to discuss the Fed pick.
Trump stated he would make his decision regarding Kugler’s replacement this week, aiming to influence the central bank’s direction. A White House official cautioned that no decision should be considered final until announced by Trump himself. On Tuesday, Trump indicated he is considering whether to fill the seat with a temporary appointee or someone he might later appoint as Fed chair.
