Trump to Appoint New Federal Reserve Governor and BLS Commissioner Amid Job Growth Controversy

President Donald Trump has announced plans to appoint a new Federal Reserve governor and a new commissioner for the Bureau of Labor Statistics (BLS) within the week. This follows the resignation of Federal Reserve Governor Adriana Kugler and the dismissal of BLS Commissioner Erika McEntarfer.

Kugler, who has served as a Federal Reserve governor since September 2023, submitted her resignation effective August 8, 2025. In her resignation letter, she stated, "It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System." She plans to return to Georgetown University as a professor in the fall.

McEntarfer was dismissed by President Trump following the release of a jobs report that showed unexpectedly weak job growth and significant downward revisions for previous months. Trump accused McEntarfer of manipulating jobs data, a claim made without evidence. The White House defended the dismissal, stating it was necessary to ensure data transparency and reliability.

Critics argue that this move undermines the credibility of U.S. economic statistics and could politicize economic data collection. Former BLS head William Beach expressed concern that Trump's actions could significantly erode trust in the U.S. economic data system.

The financial markets reacted to these developments with increased volatility. Following the weak jobs report and the political turmoil, the U.S. dollar experienced a significant drop, losing over 2% against the yen and 1.5% against the euro on Friday. Treasury yields also fell, with the two-year U.S. Treasury yield reaching a three-month low. Traders are now pricing in a high likelihood of a Federal Reserve rate cut in September.

Potential successors for Kugler's position include former Fed Governor Kevin Warsh, Treasury Secretary Scott Bessent, and National Economic Council Director Kevin Hassett. These appointments could affect the autonomy of the Federal Reserve and its monetary policy decisions.

These developments mark a significant moment in U.S. economic policy, with potential long-term implications for the Federal Reserve's independence, the credibility of economic data, and market stability.