Recep Gülcemal 
47. The first resignation from the FED came during the term of US President Donald Trump. So how will this resignation affect the markets? Is it seen as the beginning of the resignation process on the FED front? Details are in our news.
Earthquake at the FED! How Will Adriana Kugler’s Resignation Affect Monetary Policy?
US Federal Reserve (FED) Board Member Adriana Kugler resigned with a sudden decision, even though months remain before the end of her term of office. Kugler was expected to remain in office until January 2026. This resignation was interpreted as part of the Trump administration’s strategy to increase its influence on the FED.
After this resignation, there may be a risk of fluctuations in the dollar index and bond yields. After Kugler’s resignation, a name suitable for Trump’s pro-low interest rate policies is expected to be appointed instead.
Trump Administration vs FED
Although Kugler emphasised ‘personal reasons’ in his resignation letter, US President Trump’s statements may herald a different scenario.
In the statements made, it was claimed that Kugler left due to his opposition to the FED’s extremely tight monetary policies. However, there is no precise and clear information about this.
It is known that US President Donald Trump wants a FED that supports growth rather than fighting inflation. Therefore, his attitude towards those who look negatively towards lowering interest rates on the FED side continues to be negative as we all know. We know that Trump prioritises growth rather than fighting inflation and expects the FED to cut interest rates for this. Although Trump constantly expresses his desire to reduce interest rates, the FED has shown that it will continue its determined inflation struggle by leaving the FED interest rate decision made the other day unchanged. The markets, which globally turned their eyes to an interest rate decision from the FED, could not get the desired result at this meeting. After the decision to leave the interest rate fixed, the eyes turned to the FED meeting to be held in September.
It was announced by analysts that at least 2 interest rate cuts are expected in the market until the end of the year. Well, in this process, we will follow what will happen from the FED and Trump front in the following periods.
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