The Federal Reserve Board announced on Friday that Adriana D. Kugler will step down from her position as governor of the Federal Reserve Board, effective August 8, 2025.
Dr. Kugler, who has served as a governor since September 13, 2023, submitted her letter of resignation to President Trump and will return to Georgetown University as a professor this fall. The text of the letter from Governor Kugler is below:
FED Chairman Jerome Powell announced today the FED Board of Governors is keeping the interest rate at 4.25 to 4.5 percent. The Central Bank of the United States is trying to create an unsustainable debt spiral.
The goal of the FED (Central Bank) is to create a debt spiral that leads to a crisis. This is the way the Central Bank controls the activity of the smaller banks. This is the way the Central Bank keeps control over the people in America. WATCH:
Don’t pretend. Stop being a battered victim to an abusive relationship with government.
President Trump is pumping money into the USA economy through economic growth, tariff revenue, federal govt downsizing, expanded private sector employment and wage growth.
The Central Bankers are trying to drain money from the USA economy through monetary policy and control over the behavior of the smaller regional banks and credit unions.
This is one of those interviews that simply must be watched in its entirety. It’s long, almost 3 hours, but take the quiet time to watch and absorb the information provided by economist Professor Richard Werner.
Werner discusses something absolutely vital to understand about the nature of economics and the banking system that underpins it. You have often heard me say “there are trillions at stake” when describing the elements aligned against President Trump. Well, Werner gives context to what lies behind those trillions.
Nine years ago, as President Elect Trump won his first election, I wrote about the future of economics and the potential if a Main Street monetary and banking system was created. {GO DEEP} Richard Werner discusses the specific issue of how credit creation by regular banks actually creates money. He’s the first person I have seen speak who really gets it.
There are distinct differences between banks creating money for asset purchases (inflation), consumer purchases (inflation) and GDP growth (Main Street expansion). He simply nails it, and that is why he was put on the CIA radar.
When Werner speaks of the need for two distinct banking systems as a solution to the “inflationary” impact of money created for asset purchases vs GDP growth, he is specifically highlighting the difference between Wall Street money and Main Street money. This, in the largest measure, is exactly why President Trump and Secretary Mnuchin created the dual banking system. This is what led to the global pandemic as a tool to stop President Trump.
I cannot recommend this interview enough. However, don’t sell yourself short. Find a quiet place, quiet time, and take notes as you listen to Richard Werner outline the true and unspoken nature of how money is created.
When you understand what Werner is saying, everything the FED and Central Banks do starts to make sense. WATCH:
Behind what Werner is explaining you will find the motives to oppose President Trump. Werner doesn’t draw the connection to Trump’s policies, but when you hear him outline the history and the problem you will get it.
The reality of the U.S-Canada economic relationship and the position of President Donald Trump is not that difficult to understand if you take all the disparate datapoints and quotes from Trump and put them into context.
During a White House meeting with Mark Carney, President Trump essentially told the Canadian Prime Minister why he was in no hurry to get to a deal with Canada.
The 35% tariffs on non-USMCA goods are going to trigger on August 1st, because the main priority of Trump -looking toward Canada- is to dissolve the USMCA.
During the May 6th oval office meeting with Carney, President Trump was discussing the USMCA and said: “As you know it terminates fairly shortly. It gets renegotiated fairly shortly.” … “This was a transitional deal, and we’ll see what happens, we’re going to start renegotiating that” … “I don’t know if it serves a purpose anymore.” …. “And the biggest purpose it served was, we got rid of NAFTA.”
To understand why President Trump wants to dissolve the USMCA {SEE HERE}. To understand the technical value of dissolving the USMCA {SEE HERE}. It’s not a complicated economic analysis; it’s common sense.
Currently, approximately 60% of the traded goods and services between the U.S. and Canada are covered by the USMCA; the remaining 40% will be hit by tariffs on August 1st at a 35% rate.
When the USMCA is renegotiated, predictably dissolved in favor of two bilateral trade agreements – one for Mexico and one for Canada, all of the U.S-Canada trade sectors will be part of the enlarged free trade negotiation. As a result, there is absolutely no motive to engage in trade discussions now.
Office of Management and Budgets (OMB) Director Russ Vought appears on CNN to discuss the problems noted with the Federal Reserve (FED) as the organization viewed their ‘independent’ status as meaning beyond accountability. The FED has been operating without any oversight until President Trump and Russ Vought began a baseline review of how they spend taxpayer funds.
As noted by Director Vought, the FED can have independence and yet they must be held accountable to the American people. President Trump is that accountability piece and the FED were not familiar with scrutiny. They are now.
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Russ Vought also appeared on Face the Nation to receive questions from the insufferable and ever-pontificating Margaret Brennan. Video and Transcript Below:
[Transcript] – MARGARET BRENNAN: We begin today with the director of the White House Office of Management and Budget, Russell Vought, welcome to ‘Face The Nation.’
DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET RUSSELL VOUGHT: Thanks for having me.
MARGARET BRENNAN: There’s so much to get to with you. Let’s start on what’s going on with the Federal Reserve. If you take the president at his word, he does not intend to fire the Federal Reserve Chair, Jerome Powell- though he’s still criticizing him. What is the President seeking in a successor when his term ends in May 2026?
President Trump heads to the Federal Reserve today to tour a new FED building and renovation process that is experiencing massive cost overruns. There are some impromptu remarks that were previously made moments ago that I will break out in another post; however, President Trump is expected to deliver remarks shortly.
Office and Management of Budget Director Russ Vought discusses the ongoing concerns with FED Chairman Jerome Powell and the FED’s ridiculous cost overruns for their offices in Washington, DC. In addition, at the 6:00 mark of the video below, Vought discusses the first $9 billion rescission package that has passed the Senate, along with more rescission cuts that are likely to be submitted to congress.
Gotta give Director Vought a lot of credit for holding the fire to federal government spending. This is a new tone for the DC spending guards, and they are certainly on notice the Trump administration is watching. WATCH:
A few datapoints to keep on a post-it note as things progress; starting with a rather significant new release that I think you will find interesting.
Approximately 12.3 million Mexicans live abroad, both legally and illegally, with 97% of them living and working in the United States, according to BBVA Research. Last year Mexicans living abroad sent $64.75 billion back home in remittances, largely from Texas and California to states in central and western Mexico.
According to data just released, in April of this year remittances back to Mexico dropped 12.1%. The Mexico central bank said April saw 8.1% fewer transactions than a year earlier, that’s down to 12.4 million transactions. For Mexico this could be a devastating trend. [Sidenote: Remember, Trump is likely planning a complete overhaul of the USMCA later this year.]
MEXICO CITY (Reuters) -Remittances sent to Mexico slumped 12.1% in April compared to a year earlier, according to central bank data published on Monday, marking the steepest drop in over a decade as U.S. lawmakers mull a tax on such payments sent abroad.
The world’s second-largest recipient of remittances, Mexico receives these payments chiefly from migrants working in the neighboring United States. In April, Mexicans abroad sent fewer transactions and smaller payments, totaling $4.76 billion.
Analysts said the slump likely resulted from a broad crackdown on migration in the U.S. since President Donald Trump came to power in January, as authorities revoke some Biden-era protections and increase raids across the country.
The latest data marks the steepest year-on-year drop since September 2012, according to central bank data.
Like I said last night, the Trump team followed their legal due diligence in several aspects of the tariff/trade deficit reset strategy, and it did not appear the New York trade court looked at any of the supportive material from the USTR and the Dept of Commerce.
Today, a full panel of U.S. Court of Appeals for the Federal Circuit granted a “stay” and paused the lower court ruling pending full appeal outcome and possible Supreme Court intervention. [Ruling pdf Here] The President Trump trade tariffs remain in place, and the ridiculous court-ordered refunding of previously collected tariffs is set aside.
The court is suspending the lower court decision until the appeals motions are filed and reviewed. The multinational corporations have until June 5th to file their responses to the appeal, and the Trump administration has until June 9th to file their full appeal brief.
VIA CNBC – A federal appeals court on Thursday granted the Trump administration’s request to temporarily pause a lower court ruling that struck down most of President Donald Trump’s tariffs.
The Trump administration had earlier told the U.S. Court of Appeals for the Federal Circuit that it would seek “emergency relief” from the Supreme Court as soon as Friday if the tariff ruling was not quickly put on pause.
President Trump is scheduled to announce the first negotiated trade deal in the global trade reset with the United States. The deal is between the U.K and the USA, which is interesting as a UK free trade agreement was being worked on at the time COVID-19 hit in 2020.
Back in 2019 President Trump and then Commerce Secretary Wilbur Ross were working two strategic trade negotiations at the same time that never materialized. The first was an FTA with the U.K and the second was with the EU. The nuance of the U.K deal was favorable and structurally aligned to create leverage against the EU negotiations. It will be interesting to see how this one is structured.
From President Trump this morning on Truth Social: “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come. Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
