SECURITY: Trump Deploys F-35s To Puerto Rico, Esclatates Standoff w/Venezuela

• US TSY 17W AUCTION: NON-COMP BIDS $587 MLN FROM $65.000 BLN TOTAL

The Bloomberg report on Trump potentially naming a placeholder candidate for the remainder of Gov Kugler's Board term (to January) leads to the conclusion that if the administration can get a pre-vetted candidate confirmed very quickly, that newly-installed governor can vote (and likely for a cut) at the September FOMC. Though attendance at the Jackson Hole symposium on Aug 21-23 might be a little tight.

• This approach to filling Kugler's spot isn't a major surprise: Trump mentioned the possibility of naming somebody to fill the position temporarily, separately from the decision about choosing a Fed chair. He has said there are "a couple of candidates" under consideration for the Kugler replacement, but hasn't named them.
• There was one hint in the report about the possible candidate: "likely to be someone who is already in the government and who has previously been confirmed by the Senate for a federal job", which narrows it down to about 300 people if it means that they were confirmed in the current Senate session and/or they are serving in termed positions/held over from previous administrations, per Washington Post data. Link here.
• If the Bloomberg report is true, it means that the White House isn't yet appointing a so-called "shadow" Fed Chair, which would have made FOMC policymaking and communications increasingly awkward.

Supporting a Financial Times report yesterday, Bloomberg reports that US President Donald Trump is weighing additional measures targeting Russian oil revenue, following a 25% secondary tariff on Indian exports to the US, announced earlier today. 

• Bloomberg notes: “In addition to punishing buyers of Russian energy with tariffs, the Trump administration is considering new sanctions on Moscow’s covert fleet of oil tankers and several entities that enable them to operate, according to people familiar with the matter, who spoke before the administration posted the executive order on India tariffs to social media.”
• The Financial Times reported yesterday: “Blacklisting vessels in the fleet would mark the first time the US has imposed sanctions on Moscow since Trump returned to the White House in January.”
• Ukrainian President Volodymyr Zelenskyy’s chief of staff, Andriy Yermak, wrote on X this morning: “Secondary tariffs would make Russian energy extremely expensive for those who consider it “too cheap” and turn a blind eye to the killing of Ukrainians.”
• Axios reports that Trump is expected to speak with Zelenskyy this afternoon to discuss today's meeting between Russian President Vladimir Putin and Middle East Envoy Steve Witkoff. The leaders could discuss the prospect of an 'air truce' with Russia.
• Recent moves from the White House suggest the Trump administration is pivoting to more robust long-term support for Ukraine, both via a new mechanism to transfer US weapons to Kyiv and through strategic sanctions and tariffs that aim to degrade Russia's oil revenue.