Governor of the Federal Reserve Adriana Kugler | Photocredit: Kylie Cooper/Reuters
The Federal Reserve announced on Friday that Governor Adriana Kugler will resign next week and will open a place on the powerful council of the central bank that President Donald Trump will fulfill.
Kugler, who did not participate in the FED policy meeting earlier this week, would have completed her term in January. Instead, she will retire on 8 August. She gave no reason to resign in her letter of resignation.
Trump has continued his attacks on the FED since Chairman Jerome Powell said on Wednesday that the central bank would keep its short -term interest rate unchanged. Powell also said that the FED could take months to evaluate the impact of rates on the economy before they decide to lower the rates, as Trump demanded.
Powell is’ a stubborn idiot, must now considerably lower the interest rates’, ‘Trump has posted early morning before the monthly job report was released. That report showed that the recruitment was delayed in July and was much lower in May and June than initially reported.
Kugler was appointed in September 2023 as the seven -member board of the Fed by former President Joe Biden. She was the first governor of the Spanish Fed and was a professor at the University of Georgetown before he came to the Fed and was the American representative of the World Bank. She will return to the Georgetown faculty in the fall.
Kugler reflects on a term of office, returns to the academic world
“I am proud to have tackled this role with integrity, a strong dedication to serve the public, and with a data -driven approach that is strongly based on my expertise on labor markets and inflation,” she said in her letter of resignation.
In her last speech as Fed Gouverneur two weeks ago, Kugler expressed the support for Powell’s opinion that the central bank should keep rates unchanged, while officials control the economy to see how Trump’s rates influence inflation and economy.
In the meantime, Trump has said that he will designate FED officials who prefer to reduce the rates.
The role after 2026 from Powell remains unclear
A complication is that the period of Powell as chairman ends in May 2026. But his position on the board of the Fed lasts until January 2028. As a result, he was able to stay on the board even after he resigned as chairman, and simply remain as one of the seven governors.
There is a precedent for such a step: Marriner Eccles, who served as a FED chair in the 1930s, remained on the board after completing his term of office as chairman.
If Powell were to take such a step, it would mean who chose the Trump administration to replace Kugler, then it can be increased to chairman after Powell was finished as chairman in May 2026. In other words, to get their choice from Fed Chair in 2026, the Trump -white house can choose to appoint that person to replace Kugler as a Governor and then elevate to feed the chairman in May 2026.
Powell has refused to answer at the last two press conferences whether he will leave the board when he is ready as chairman.
Published on August 2, 2025
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