Trump seizes appointment advantage! Federal Reserve Governor Powell announces resignation.

The Federal Reserve announced on Friday that Federal Reserve Board Governor Lael Brainard will resign from her position on the Federal Reserve Board of Governors. Although her term was originally set to continue until January 2026, this sudden resignation provides President Trump with an opportunity to nominate a successor earlier than expected. In her resignation letter to President Trump, Brainard stated, "It has been the honor of my life to serve as a Governor of the Federal Reserve System. Particularly at this critical moment, to have the opportunity to contribute to our dual mandate of lowering inflation and maintaining a strong and resilient labor market, I feel immensely privileged." Brainard did not attend this week's Federal Reserve policy meeting, where Fed officials for the fifth consecutive time decided to keep interest rates unchanged. The Federal Reserve at the time cited her absence due to "personal matters." The resignation letter also did not specify the reasons for her departure. Brainard's resignation comes amid ongoing pressure from Trump and his allies on the Federal Reserve and Chairman Powell to lower interest rates. Despite some easing in inflation this year, policymakers have not taken action to lower interest rates. Brainard's vacant seat presents Trump with the opportunity to quickly nominate someone more in line with his monetary policy stance, potentially altering the balance of future Federal Reserve decisions on interest rates.