Trump to Pick Replacement as Fed Governor Kugler Resigns

Key Takeaways

• Fed Governor Adriana Kugler will resign on August 8 to rejoin Georgetown University.
• Her departure creates a Board vacancy, allowing President Trump to nominate her replacement.

Federal Reserve Governor Adriana Kugler will leave the Board of Governors next Friday, August 8, to return to Georgetown University, the central bank announced. Kugler has served as governor since September 13, 2023.

In her resignation letter to President Trump, Kugler noted her service on committees, including the Financial Stability Committee, Federal Reserve Bank Affairs Committee, Board Affairs Committee, and the Subcommittee on Smaller Regional and Community Banking.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”

Kugler’s resignation occurs amidst Trump's pressure on the Fed to cut interest rates and his public criticism of Chair Jerome Powell.

The vacancy enables Trump to nominate a replacement for the influential central bank board, less than two years after Kugler's appointment by the previous administration. This nomination could shift the balance within the Fed, potentially influencing future monetary policy decisions.

Trump criticized Fed Chair Jerome Powell in a recent statement, calling him stubborn and advocating for immediate interest rate cuts. He suggested the Board should intervene if Powell doesn't act, escalating tensions within the Federal Reserve system.