Federal Reserve Governor Adriana Kugler will be stepping down from her position earlier than expected, allowing United States President Donald Trump to nominate someone to the role at a time when he is pushing for lower interest rates.
In her resignation letter to Trump, Kugler did not state a reason for her decision to leave and only noted that she will be returning to Georgetown University as a professor in the fall.
“It has been an honour of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler wrote.
“I am especially honoured to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labour market.”
Kugler’s term was set to expire at the end of January 2026, but instead, she will be leaving effective as of 8 August.
She was nominated by former President Joe Biden to the Board of Governors in 2023, filling the unexpired term of Lael Brainard, who left to serve as a Biden economic advisor.
During her time on the board, she was a permanent voter on the rate-setting Federal Open Market Committee.
Her resignation leaves space for Trump to put his nominee on the board that shares his views for lower interest rates and could be the only seat open until 2028 if Fed Chair Jerome Powell decides to stay on the board after his chairmanship ends next May.
Powell, who has been in an ongoing feud with Trump, has wished Kugler well following the resignation.
“I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavours,” Powell said in the release.
“She brought impressive experience and academic insights to her work on the Board.”
Trump claimed to reporters that Kugler was resigning because of the Fed’s stance on interest rates and used the opportunity to further pile on Powell.
“’Too Late’ Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned. She knew he was doing the wrong thing on Interest Rates. He should resign, also!” Trump said on Truth Social.
He also stated that is is “very happy” about having an open spot on the Fed Board.
Whoever Trump picks will be eligible for the role of Fed Chair should Powell step down, and Treasury Secretary Scott Bessent said the administration is already looking for Powell’s successor.
Contenders for the top job at the central bank include Bessent himself, Kevin Warsh, a former Fed governor, Christopher Waller, a current Fed governor, and Kevin Hassett, the director of the White House’s National Economic Council.
According to Fed rules, the next Fed Chair could only be chosen from members of the Fed Board.
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