Fed Governor Kugler Resigns
Fed Governor Kugler Resigns
The News
Federal Reserve Governor Adriana Kugler announced Friday she is stepping down from her role at the central bank, creating an important vacancy at a time when President Donald Trump is pushing for lower interest rates.
In a letter addressed to Trump, Kugler, 55, did not state a reason for her decision to leave, only noting that she will be returning to Georgetown University as a professor in the fall.
Her resignation now paves the way for Trump to put his own nominee in for the board. Two of his prior appointments, Christopher Waller and Michelle Bowman, voted against the decision at Wednesday’s meeting to hold the Fed’s key rate steady, instead indicating they wanted to lower. Kugler was absent for the vote.
Reactions
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler wrote. “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.”
Trump alleged without proof that Kugler resigned over a disagreement with Powell on interest rates. Trump added that he was “very happy” about having a Fed vacancy to fill.
Fed Chair Jerome Powell wished Kugler well, saying “She brought impressive experience and academic insights to her work on the Board.”
What's Next
Trump has said he would litmus test any potential nominees and would only support those in favor of lower interest rates.
Regardless, Kugler leaving would allow Trump to get someone who shares his views on rates and who might be targeted to fill Powell’s seat. The president and some of his advisors have toyed with the idea of a “shadow chair” who essentially could act as a gadfly on the board until Powell leaves.
More
Kugler’s term was set to expire at the end of January 2026. A Biden nominee, she joined the Board of Governors in September 2023, filling the unexpired term of Lael Brainard, who left to serve as a Biden economic advisor. As a governor, Kugler was a permanent voter on the rate-setting Federal Open Market Committee.
Kugler of late has expressed generally hawkish views, with support for holding rates steady until the impact Trump’s tariffs are having on inflation becomes clearer.
In addition to Kugler’s departure, Powell’s term ends in May, though he could choose to stay on as governor into 2028.
UMass Dartmouth Running Back, 18, Stabbed to Death
Trump Vows 'AI Force,' Czar; Polls Name Change
Sep 20, 2026
Iran Sends Trump Three Conditions to End War
Sep 19, 2026
Faulty AI Intel Nearly Started War With China
Sep 19, 2026
German General Breuer Elected NATO's Top Officer
Sep 19, 2026
Nobel Laureate: War, Sanctions Crushing Iranians
Sep 19, 2026
Dutch Police Disperse Violent Far-Right Hague Protest
Sep 19, 2026
GOP Midterm Odds Fade With 45 Days Left
Sep 19, 2026
Maher Rejects Tarlov's Claim Democrats Are Less Crazy
Sep 19, 2026
Patrick Clancy Breaks Silence After Ex-Wife Killed Kids
Sep 19, 2026
Trump Cuts Park Staff, Diverts Fees to DC
Sep 19, 2026
Holocaust Heirs Sue LA Museums Over Looted Art
Sep 19, 2026
Trump's Fed Chair Hikes Rates, Defying White House
Sep 19, 2026
Miller Drives Push to Deport Illegal Immigrant Children
Sep 19, 2026
US Lifts Sanctions on Eritrea's Military, Ruling Party
Sep 19, 2026
Air Force Admits US Has Space Weapons
Sep 19, 2026
Turkey Revokes License of Iran's Mellat Bank
Sep 19, 2026
Billionaire Ratcliffe Blasts Britain Over Immigration, Taxes
Sep 19, 2026
Navajo Nation Flash Flood Kills Three
Sep 19, 2026
Explosions Over Riyadh Trigger Saudi Air Alerts
Sep 19, 2026
Sep 19, 2026