Adriana Kugler Fed resignation opens up early vacancy on the Federal Reserve Board, giving Trump new power to reshape its future.
Adriana D. Kugler, a governor on the Federal Reserve Board, will step down from her position next Friday, months ahead of her term’s scheduled end in January. The Federal Reserve confirmed her resignation on Friday without citing a reason. Kugler’s early exit gives President Donald J. Trump a critical opportunity to appoint a new governor—and potentially lay the groundwork to replace Jerome H. Powell as Fed chair.
Kugler, who was nominated by former President Joe Biden and joined the board in September 2023, did not attend the Fed’s recent policy meeting this week and did not vote. In a public speech last month, she warned that the Fed should avoid cutting interest rates too soon, citing inflationary pressure from tariffs.
President Trump responded swiftly. Speaking to reporters, he said, “I just found out that I have an open spot on the Federal Reserve Board. I’m very happy about that.” Later on, social media, he called on Jerome Powell to resign, stating that Kugler had stepped down because she “knew he was doing the wrong thing on interest rates.”
Trump has repeatedly criticized Powell for not cutting rates and has suggested removing him as chair, whose term ends in May. He has even floated naming a successor before Powell's current term expires.
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It remains unclear whether Chair Jerome Powell will remain on the board as a governor until 2028 if removed as chair. Asked during a press briefing on Wednesday, Powell declined to answer. His decision could affect Trump’s choice for Kugler’s replacement. If Powell stays, Trump’s pick may act as a "shadow chair", creating potential market tension.
Trump already appointed two governors during his first term: Christopher J. Waller and Michelle W. Bowman. Both dissented during this week’s vote, calling for a quarter-point rate cut, aligning with Trump’s stance. Trump noted their dissent as a sign that pressure on Powell “will only get stronger.”
If Powell steps down entirely, Trump could fill two seats on the seven-member board, significantly shifting its policy outlook.
Adriana Kugler, an expert in labor economics, holds the distinction of being the first Latino person to serve on the Fed’s board. She previously served as the U.S. executive director at the World Bank. She now plans to return to her academic post at Georgetown University this fall.
In a farewell statement, she said, “It has been an honor of a lifetime to serve on the Board of Governors... during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”
Chair Powell praised her contributions, saying she “brought impressive experience and academic insights” to the board.
Trump has also criticized the Fed’s $2.5 billion renovation project, calling it over-budget by $700 million. He toured the facility last week and appointed new members to the National Capital Planning Commission to review its costs.
Bill Pulte, head of the Federal Housing Finance Agency, also amplified the news of Kugler’s resignation online, using a siren emoji and urging Powell to step down.
