The post Trump Moves to Replace Fed and BLS Chiefs Amid Economic Shake-Up, Crypto Market Rallies appeared first on Coinpedia Fintech News
President Trump is moving quickly to replace two key economic positions, backing a pro-rate-cut agenda. With the chances of a September rate cut nearing 80%, markets are reacting—crypto has surged, adding to the growing momentum.
Two major vacancies opened Friday, one at the Federal Reserve after Governor Adriana Kugler’s unexpected resignation, and the other at the Bureau of Labor Statistics after the President fired Commissioner Erika McEntarfer.
Trump Fires BLS Chief Over Jobs Data
President Trump fired McEntarfer after poor jobs data, accusing her of manipulating job numbers. His team points to recent downward revisions of 258,000 jobs in May and June as justification. “We had no confidence, the numbers were ridiculous,” Trump said. “In my opinion, it’s a scam.”
Trump is weighing several candidates for the Fed role and plans to announce his pick soon. “I have a couple of people in mind,” he said, adding that a new BLS chief will also be named in the coming days.
Federal Reserve Governor Adriana Kugler’s term was set to end in January. In her letter to the President, she gave no explanation for stepping down. Her departure takes effect August 8.
Fed Shake-Up Gives Trump New Leverage
Kugler’s resignation gives Trump a key opening to remake the Federal Reserve. During her tenure, she has backed Fed Chair Jerome Powell, who Trump often criticizes.
According to a report from Bloomberg, contenders to fill the Fed vacancy, and potentially succeed Jerome Powell as chair when his term ends in May, include Kevin Hassett, Kevin Warsh, Scott Bessent, and current Fed Governor Christopher Waller.
After the Fed held rates steady for the fifth time, Trump ripped into Chair Jerome Powell on Truth Social, calling him a “stubborn moron” and urged the Fed Board to take control if he won’t cut rates. He has long accused Powell of being too slow and hurting the economy with high rates.
Rate Cut Chances Cross 80%
However, the chances of a September rate cut have climbed to over 80%, according to the CME FedWatch tool. Additionally, if Trump appoints a pro-rate-cut Fed governor, it could further push the Fed toward easing at the next FOMC meeting, injecting liquidity into the markets and potentially boosting crypto prices.
Crypto Market Rallies
The crypto market has climbed to a $3.83 trillion market cap, up 1.7% in the last 24 hours. Bitcoin is up over 1%, while Ethereum, XRP, and Cardano have jumped 3–5%, adding to the bullish momentum.
Fueling the rally further is a breakthrough in the U.S.–E.U. trade deal, with the European Union proposing a six-month pause on its countermeasures, which has boosted investor confidence across markets, including crypto.