Federal Reserve Governor Adriana D. Kugler has announced she will resign from the Fed effective Aug. 8, several months ahead of the end of her term in January 2026.
According to the Fed and Reuters, Kugler, appointed by President Joe Biden and confirmed in September 2023 to complete a term originally ending Jan. 31 of the coming year, will return to Georgetown University as a professor this fall.
Her early departure creates an immediate vacancy on the seven-member Board of Governors, giving President Donald Trump an early opportunity to nominate a replacement who could influence future Fed policy, including potentially the leadership direction beyond Chair Jerome Powell.
That opportunity may prove strategic; as Newsmax has reported, Trump has intensified pressure on the Fed to cut interest rates — a position Powell continues to resist amid inflation concerns.
Kugler issued a statement expressing gratitude for her tenure, Barron’s reported, calling her service during a critical time in achieving the Fed’s dual mandate of price stability and maximum employment an “honor of a lifetime.”
She offered no commentary on economic policy or internal Fed deliberations as part of her decision.
Prior to her Fed appointment, Kugler held various roles including chief economist at the U.S. Department of Labor and U.S. executive director at the World Bank.
Multiple news sources say Kugler has been a consistent voice against cutting rates too soon. In mid-July, she cautioned that Trump’s tariff policies were already driving inflation higher, supporting the Fed’s decision to keep the federal funds rate steady between 4.25% and 4.50%. Her departure removes one vote keeping a hawkish stance, potentially shifting the board’s future leanings.
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