Fed Governor Adriana Kugler is resigning from her role at the Federal Reserve, creating a vacancy just as President Donald Trump is pushing for lower interest rates. The 55-year-old governor did not give a reason for her departure but will return to Georgetown University as a professor in the fall.
Kugler’s term was set to expire in January 2026 and she had been a permanent voter on the rate-setting Federal Open Market Committee. Her resignation allows Trump to nominate someone who shares his views on interest rates.
Two of Trump’s prior appointees, Christopher Waller and Michelle Bowman, voted against lowering interest rates during the latest Fed meeting. Kugler was absent from the vote but has expressed hawkish views in recent months.
Fed Chair Jerome Powell wished Kugler well and praised her experience and academic insights. However, Trump has said he would only support nominees who favor lower interest rates.
Kugler’s departure creates a window for Trump to fill the vacancy with someone who shares his views on monetary policy. With Powell’s term ending in May, this move could be part of Trump’s strategy to shape the Fed’s future direction.
Source: https://www.cnbc.com/2025/08/01/federal-reserve-governor-kugler-part-of-the-committee-that-sets-interest-rates-is-resigning.html