Wall Street Journal: “It isn’t unusual for Fed governors to leave before their terms expire. But Kugler’s departure came as a surprise to her colleagues because she had recently been engaged in conversations about pending business before the central bank’s board, including matters that they expected would carry into January.”

“President Trump’s team is reviewing new contenders to be the next chairman of the Federal Reserve, with a longtime economic consultant and a past Fed president added to the list,” the Wall Street Journal reports.

“About 10 people are under consideration for the job.”

“The Trump administration is pushing ahead with plans to take US mortgage giants Fannie Mae and Freddie Mac public later this year, in a move that would bring the federally-backed housing finance agencies out of government control,” the Financial Times reports.

“In naming Stephen Miran to the governor spot vacated Friday as Adriana Kugler steps aside, President Trump is seeking to place someone who wants a root-and-branch overhaul of the Fed inside the central bank,” Axios reports.

“In the near term, Miran will, if confirmed, be a voice for Trump’s desired interest rate cuts.”

“But Miran’s critique of how the Fed operates goes much deeper — and his conception of central bank independence is distinctly non-mainstream.”

“Millions of Americans saving for retirement through 401(k) accounts could have the option of putting their money in higher-risk private equity and cryptocurrency investments, according to an executive order signed Thursday by President Donald Trump that could give those financial players long-sought access to a pool of funds worth trillions,” the AP reports.

“There is no immediate change in how people invest part of their work earnings. Federal agencies would need to rewrite rules and regulations to allow the expanded choices, and that would take months or more to complete.”

“White House officials are preparing for President Donald Trump to nominate Council of Economic Advisers Chairman Stephen Miran to serve as a Federal Reserve governor,” Bloomberg reports.

“In the chess game over bending the Federal Reserve to his will and sidelining Chair Jerome Powell, a significant piece just fell into President Trump’s hands,” the Wall Street Journal reports.

“Fed governor Adriana Kugler said unexpectedly last week that she will leave the central bank this Friday, about six months before her term was set to end. That gives the president the chance to install his own pick on the rate-setting committee earlier than he had expected, adding pressure on Powell with a new ally who can push for interest-rate cuts.”

“Trump could also use that selection to position someone as the heir apparent to Powell, creating a competing voice that markets listen to for signals about the Fed’s future direction.”

Bloomberg: Trump says he’ll decide on Fed governor before end of the week.

“Donald Trump has ruled out appointing Treasury secretary Scott Bessent to the Federal Reserve, as he narrows the list of candidates to lead the US central bank,” the Financial Times reports.

Said Trump: “I love Scott, but he wants to stay where he is. He does not want it. He likes being Treasury secretary. He’s doing a really good job.”

“The White House is preparing to step up pressure against big banks over perceived discrimination against conservatives and crypto companies with an executive order that threatens to fine lenders that drop customers for political reasons,” the Wall Street Journal reports.

“A draft of the executive order directs bank regulators to investigate whether any financial institutions might have violated the Equal Credit Opportunity Act, antitrust laws or consumer financial protection laws.”

“Violators could be subject to monetary penalties, consent decrees or other disciplinary measures.”

Wall Street Journal: “Investors have long parsed economic reports on the labor market or inflation to help determine prices for stocks and bonds. But after weak jobs data on Friday prompted President Trump to fire Erika McEntarfer, the top Bureau of Labor Statistics official, the sacrosanct importance of U.S. government data to investors suddenly came into doubt.”

“Banks have fielded calls from clients, anxious that they may need to rethink how they invest if inflation and employment statistics tied to U.S. investments can’t be trusted.“

“President Donald Trump wants lower interest rates. Achieving that objective will require overcoming bigger obstacles than Fed Chair Jerome Powell,” Bloomberg reports.

“There are structural forces that drive the cost of borrowing, and right now they’re pointing up. Governments and businesses are piling on debt to pay for tax cuts, military spending, and AI investments — which means more demand for credit. As the Baby Boomers retire and China decouples from the US, the pool of saving to finance those loans is drying up.”

“Federal Reserve governor Adriana Kugler is unexpectedly stepping down early from the central bank’s powerful board of governors, creating an early vacancy that will give President Donald Trump an early opportunity to shape the Fed’s leadership,” the Washington Post reports.

“President Trump on Thursday unleashed a fiery reaction after the Federal Reserve held interest rates steady, blasting Fed chair Jerome Powell with a stream of insults and suggesting corruption in the renovation of the central bank’s headquarters,” Axios reports.

Said Trump: “He is TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL to have the job of Fed Chair.”

The U.S. Treasury will issue more short-term debt to help fund its widening budget deficit, a continuation of a Biden-era policy that Treasury secretary Scott Bessent had previously disavowed, the Financial Times reports.

“We should have lower interest rates as long as it will not cause inflation, and as long as tariffs will not cause inflation, and we don’t know the answer to any of those questions yet. That’s why the Fed is being cautious. Once you let this cat out of the bag, it’s pretty hard to get it back in.”

— Sen. John Kennedy (R-LA), quoted by Semafor.

“This week’s Fed meeting could produce something that hasn’t happened since 1993: more than one governor voting against the Fed chair. The groundwork was laid weeks ago. Welcome to monetary policy in the age of the succession campaign,” the Wall Street Journal reports.

“Fed Chair Jerome Powell and his colleagues have signaled they favor maintaining a wait-and-see approach at this week’s meeting. The potential dissenters—governors Christopher Waller and Michelle Bowman—happen to be President Trump’s two appointees. Both have voiced support for cutting rates, which Trump also has publicly demanded.”

ABC News: Federal Reserve likely to stand Pat on rates this week.

“Jerome Powell has rarely had it easy during his tenure as chair of the Federal Reserve. Under his watch, the central bank has had to navigate through two global trade wars, a once-in-a-century pandemic, multiple geopolitical conflicts overseas and the worst inflation shock in decades,” the New York Times reports.

“But with just nine months to go until his term as chair is up, Mr. Powell’s circumstances have become particularly precarious.”

“Mr. Powell is facing relentless attacks from the White House and the recurring threat of being ousted by President Trump, while a handful of candidates openly jockey to replace him. He must grapple with all of this while managing divisions in his own ranks about when to lower interest rates again after a long pause.”