Fed governor Kugler resigns, giving Trump a vacancy on the Fed board

Federal Reserve Governor Adriana Kugler announced Friday that she will be stepping down from her post on the central bank’s board effective August 8, creating an opportunity for President Donald Trump to appoint a new member to an institution he has frequently criticized in recent months.

Though Kugler’s term was scheduled to run through January, she did not cite a specific reason for her early departure. According to a Federal Reserve statement, she plans to return to Georgetown University this fall, where she previously served as a professor. Kugler, a former chief economist at the U.S. Department of Labor and World Bank executive, was appointed to the Fed’s board by President Joe Biden and confirmed by the Senate in 2023.

In a resignation letter addressed to President Trump, Kugler wrote:

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System. 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.”

She went on to express pride in her service and emphasized her data-driven approach:

“I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation.”

Federal Reserve Chair Jerome Powell, who has come under frequent attack from Trump, offered a brief statement acknowledging Kugler’s departure:

“I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors. She brought impressive experience and academic insights to her work on the Board.”