Federal Reserve Governor Adriana Kugler’s resignation has increased speculation about who will be the next leader of the central bank. President Trump’s nominee for the vacant post could join the Fed before Jerome Powell’s term as chair ends in May. This would allow Trump to install new leadership at the central bank, which is a priority for him.
Powell’s term as Fed governor runs through 2028, but he has been tight-lipped about his plans after his leadership term ends. It is likely that Trump will use Kugler’s vacant slot for one of his preferred candidates, possibly Christopher Waller or Michelle Bowman. The timing comes as the administration is already targeting Powell.
Recent statements from Treasury Secretary Scott Bessent and Powell himself have fueled speculation about a “shadow Fed chair.” This concept would undermine Powell by appointing a temporary replacement to confuse the market before his actual nomination. Trump has announced plans to announce his pick in the coming days, which could impact the Federal Reserve’s leadership dynamics.
Source: https://www.axios.com/2025/08/04/trump-fed-powell-interest-rates-governor