US Federal Reserve Governor Adriana Kugler is resigning several months before her term ends, handing President Donald Trump an early opportunity to fill a key vacancy. Kugler steps down from her role effective August 8 and was appointed by former President Joe Biden in 2023.
Kugler cited serving during “a critical time” as bringing down prices and maintaining a strong labor market as reasons for her departure. However, no specific reason for her resignation was stated by the Fed.
President Trump claimed Kugler’s departure was due to disagreements over interest rates. He stated that she disagreed with his stance on keeping interest rates steady, which has been maintained by the Fed so far this year. Trump also expressed his satisfaction at having an open spot on the Fed Board and later used Kugler’s resignation as leverage against Fed Chair Jerome Powell.
The Fed is now searching for Powell’s successor, with contenders including Treasury Secretary Scott Bessent and former Fed governors Kevin Warsh and Christopher Waller. Despite Powell’s term ending in 2028, he may still remain on the board, limiting Trump’s options for a new Fed chair.
It remains unclear if Trump has the power to demote Powell or elevate another governor as chair of the Fed.
Source: https://edition.cnn.com/2025/08/01/business/federal-reserve-kugler-trump-powell