Federal Reserve Governor Adriana Kugler has announced her resignation from the central bank, creating an influential vacancy as President Donald Trump seeks to lower interest rates.
Kugler steps down early
Kugler, age 55, informed Trump of her decision in a letter, stating she would return to Georgetown University as a professor in the fall.
Kugler did not specify a reason for her departure, but wrote:
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System. 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.”
Her term was scheduled to end in January 2026, but she will leave before then.
Kugler joined the Board in September 2023, filling an unexpired term, and was a permanent voting member of the Federal Open Market Committee.
Trump gains Fed nomination power
With Kugler’s resignation, Trump will have the opportunity to nominate a new member to the board.
Two of his previous appointees, Christopher Waller and Michelle Bowman, recently voted in favor of lowering interest rates, while Kugler held a more hawkish stance, supporting steady rates until the effects of Trump’s tariffs on inflation become clearer.
Trump claimed, without evidence, that Kugler resigned due to disagreements with Fed Chair Jerome Powell on rates, and said he was “very happy” to have a vacancy to fill.
Possible impact on Fed policy
Trump has publicly stated he would only nominate individuals who support lower rates.
Kugler’s departure may allow Trump to install an ally who shares his monetary policy views and could potentially influence future leadership at the Fed, as Powell’s term concludes in May.
Fed Chair Powell praised Kugler’s contributions, noting “she brought impressive experience and academic insights to her work on the Board.”
