Former Federal Reserve Governor, Adriana Kugler resigns abruptly

Former Federal Reserve Governor, Adriana Kugler abruptly resigned from the Board on August 1st 2025 even though her term was not set to expire till January 2026.

Kugler has refused to give a reason for stepping down and has also decided not to comment further to media which has fueled speculation and confusion. The Federal Reserve commented that Kugler would be returning to Georgetown University as a professor in the fall, but her faculty page doesn't show her teaching any courses, and hasn't been updated since she became governor of the Federal Reserve Board, and Georgetown University has also refused to put out a statement about Kugler's status with the university. 

There's speculation on whether she might have been pressured to step down, especially because other Fed board members are under political scrutiny. NBC notes that "inconsistent real estate records have become a type of ammunition that the Trump administration has used to target its political enemies, often citing the records to publicly accuse people of having committed 'fraud'." These allegations have been extended to Lisa Cook, the Former Fed governor who had a campaign launched against her for committing 'mortgage fraud', and other political figures like New York Attorney General Letitia James and Democratic California Sen. Adam Schiff (who are two of Trump's legal antagonists) who have also been accused of mortgage irregularities. While real estate records related to Kugler also show discrepancies regarding her primary residence, nothing shady seems to be going on there.

Kugler's resignation provided Donald Trump with the opportunity to choose a successor to fill her seat till the end of her term, and he chose Stephen Miran, the White House advisor. With this addition to the board, Trump now has nominated three of the seven members on the board, which gets him closer to his goal of 'dominating' the central bank. 

Seating Miran on the Fed Board is a victory for Trump who has been battling for months with the Federal Reserve Chairman Jerome Powell for control and to drop the interest rates. The Trump administration have accused Powell of deliberately holding back U.S. economic growth, and Trump says he should have lowered interest rates a long time ago.

Trump finalized Japan trade deal with 15% tariffs as Ishiba faces discontent from within party

On September 4, 2025, U.S. President Donald Trump signed an executive order implementing a new trade deal with Japan that lowers tariffs on Japanese automobiles from 27.5% to 15%, effective retroactively from August 7, and prevents double taxation on goods already above that threshold, while exempting commercial aircraft. In return, Japan pledged $550 billion in U.S. investments spanning semiconductors, pharmaceuticals, energy, metals, and shipbuilding, alongside increased purchases of American agricultural and defense products, including an order of 100 Boeing planes. Japanese Prime Minister Shigeru Ishiba praised the agreement as a diplomatic breakthrough that clears uncertainty for key industries and invited Trump to visit Japan, stressing a shift from tariffs to investment-based relations. Yet Ishiba’s leadership is under pressure at home, as internal dissatisfaction within the Liberal Democratic Party and recent electoral setbacks could trigger a party leadership challenge as early as Monday, leaving his political future uncertain.

https://www.cnbc.com/2025/09/05/trum-japan-trade-deal-tariffs-ishiba-ldp-party.html

Retirees and the Fed

At the Federal Reserve’s annual meeting in Jackson Hole last week, Chair Jerome Powell suggested that interest rate cuts may be coming soon. This announcement made the stock market jump, but it was worrying news for retirees. As Brett Arends explained in MarketWatch (Aug. 22, 2025), retirees came away worse off because of three things: the chance of lower interest rates, higher inflation caused by tariffs, and signs that the Federal Reserve may be giving in to political pressure.

For retirees who depend on savings accounts, CDs, and bonds, lower interest rates mean less money earned on their investments. That leaves them with less income to cover everyday expenses. At the same time, inflation is still higher than the Fed’s two percent goal. Prices have been rising by about 2.7 percent overall and 2.9 percent when food and energy are excluded. This makes life more expensive, which is especially hard for people on fixed incomes.

Another major concern is the independence of the Federal Reserve. Powell avoided defending his colleagues and appeared open to rate cuts even though there was little economic reason to promise them. This raised fears that the Fed may be bending to political pressure. History shows why this matters. In the 1960s and 1970s, when the Fed followed politics too closely, inflation got out of control. It was only when an independent Fed, under Paul Volcker in the 1980s, took tough steps that inflation came back down.

In the end, Powell’s remarks gave retirees little to feel good about. They now face lower income from their savings while also dealing with rising prices. The stock market may like the idea of lower interest rates, but for people living on fixed incomes, it creates real financial strain.

https://www.marketwatch.com/story/retirees-the-news-from-jackson-hole-is-ominous-for-you-9ca906f0?utm_source=chatgpt.com

Tourism Sector on Track for Record-Breaking Economic Impact

 Kenya’s tourism industry is poised for a historic year in 2025, with the World Travel & Tourism Council (WTTC) projecting a contribution of KSh 1.2 trillion to the economy. This figure is not only 24% higher than pre-pandemic levels but also represents more than 7% of Kenya’s GDP, making tourism a pillar of national growth alongside agriculture and manufacturing. The sector’s impact is wide-reaching, supporting an estimated 1.7 million jobs. These roles stretch far beyond hotels and safari guides, extending into agriculture, transportation, and handicrafts. Tourism’s employment multiplier effect is crucial in a country where job creation remains one of the government’s top priorities.

Spending patterns underscore the sector’s dual strength. Domestic tourists are expected to spend nearly KSh 560 billion, reflecting the growth of Kenya’s middle class and a renewed interest in local destinations. Meanwhile, international visitor spending is projected at over KSh 300 billion, up 31% from 2019, fueled by relaxed visa rules and aggressive global marketing. Tourism Minister Rebecca Miano has set ambitious revenue targets of KSh 650 billion (approx. US$5 billion) for 2025, up sharply from KSh 452 billion in 2024. Much of this growth will come from diversification into coastal, cultural, and conference tourism, reducing reliance on the traditional safari product.

Social media influence over Gen Z investment rates

    Retail investing among Gen Z has surged dramatically over the past decade, with 25-year-old participation jumping from just 6% in 2015 to 37% in 2024, according to JPMorgan. This spike was especially pronounced during the pandemic, when social media exposure and accessible mobile trading platforms led many young people, especially men, into the markets. Male participation in investment rose from 20% to 30%, widening the gender gap, while female participation remained flat at about 35% of retail investors overall. JPMorgan researchers emphasized that while the pandemic may have created a temporary cohort effect, the new baseline for Gen Z investment participation is likely to remain well above pre-2020 levels.

    The study also highlighted positive shifts in income-based access to investing. Individuals from below-median income groups represented about 20% of investors in 2014, but their share rose to 31% by May 2025, the highest outside of periods affected by direct stimulus payments. Despite these improvements, significant gaps persist, both in income and gender. The authors talked about the need for targeted financial education, noting that new investors are increasingly vulnerable to risks like tax surprises during bull markets and emotional reactions to losses during downturns. As more first-time investors enter the financial system, JPMorgan suggests financial advisors may need to evolve their roles to support these shifting dynamics.

https://www.aol.com/gen-z-six-times-more-100858510.html