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The Federal Reserve recently experienced an unexpected event. Governor Quigley suddenly announced his resignation, a decision that sent shockwaves through Washington's political arena. This sudden change gave Trump an unexpected opportunity, but it also brought him immense pressure.
Trump has long wanted to place his own candidates within the Federal Reserve, and now this opportunity has come more quickly than expected. Kugar's departure means that Trump must make a swift decision, and he may even have to determine the next Federal Reserve chairman's candidate months in advance.
Why is this decision so urgent? The reason lies in the special situation of the current Federal Reserve Chairman Jerome Powell. Powell's term as chairman will end in May next year, but his term as a governor of the Federal Reserve will not expire until 2028. If Powell chooses to continue serving as a governor, then before 2028, Trump will lose the opportunity to appoint new members to the Federal Reserve.
Financial experts point out that the vacancy left by Cugler may be the only opportunity Trump can maneuver at present. If Trump intends to choose the next chairman from outside the Federal Reserve, he will likely need to directly nominate that candidate to fill Cugler's position, which would effectively reveal his considerations for the chairman's selection.
This sudden event has undoubtedly put Trump in a position where he must reveal his cards as soon as possible. For Trump, known for his calculative nature, this opportunity is both a challenge and a situation that may have been anticipated long ago. Regardless, this change undoubtedly puts tremendous pressure on Powell and allows people to once again witness Trump's political skills.
Behind the recent personnel changes at the Federal Reserve, the financial markets are also closely monitoring the potential impacts. The price movements of cryptocurrencies such as Bitcoin may be indirectly affected by this event, and investors are cautiously observing the developments.