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Federal Reserve Governor Adriana Kugler Resigns

The member of the Council of Governors of the Federal Reserve, Adriana D. Kugler, announced her resignation, resigning for a particularly sensitive moment for the American central bank while President Donald Trump continues to challenge the long -standing tradition of the independence of the Fed.

In a statement published on Friday, the Fed said that Kugler’s resignation would take effect on August 8. Although she did not provide a specific reason for her departure, the central bank noted that she planned to return to her university post at the University of Georgetown. His mandate was to end in January.

“It was an honor of a life to sit on the Council of Governors of the Federal Reserve System,” said Kugler. “I am particularly honored to have served for a critical period to reach our double mandate to reduce prices and keep a solid and resilient labor market.”

Kugler’s departure is particularly significant given his role as voting member of the Federal Open Market Committee (FOMC), the panel of 12 members who establish American interest rates.

Only a few days before the announcement of its resignation, the FOMC completed its political meeting in July with the decision to leave the interest rates unchanged. In doing so, the central bank avoided sending a clear signal at the moment when the rate decreases resume.

With the departure of Kugler, Trump now has the opportunity to appoint a replacement. The seven members of the Council of Governors of the Federal Reserve are appointed by the President and confirmed by the Senate.

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Fed Independence Contested in the Trump era

Kugler’s resignation comes at a time of increased tension for the American central bank, while questions swirl around the future of the president of the Fed, Jerome Powell and Trump intensifies his attacks on the independence of the institution.

In recent months, Trump and his allies have renewed efforts to push the congress to withdraw Powell, accusing him of having poorly managed monetary policy and federal government assistance with billions of additional borrowing costs.

“We have a man who simply refuses to reduce the rate of the Fed,” said Trump about Powell in June, according to ABC News. “Maybe I should go to the Fed. Do I have the right to name myself?

Trump again took the truth about Social on Thursday to criticize Powell, this time for the Fed’s decision to hold stable rates at his last political meeting.

Source: Social truth

Trump’s repeated public interventions mark a break in relation to a standard of several decades of the independence of the Central Bank, in which the executive power refrains from interfering in monetary policy decisions. He called for historically large rate reductions to reduce payments of federal interests and stimulate economic growth.

Source: The Kobeissi letter

The Fed’s political decisions also continue to undulation in the financial markets. Following a warmer inflation report than expected earlier this week and the Fed’s decision to hold stable rates, Bitcoin (BTC) experienced a reversal, reflecting the doubts of investors on the calendar and the scale of potential rate drops.

However, as Cintelelegraph reported, expectations in terms of lower rates have rebounded in the wake of the pay report either than non-anti-anti-agation.

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