Fed Governor Adriana Kugler Resigns, Trump Gets Pick/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Federal Reserve Governor Adriana Kugler is stepping down early, opening a crucial vacancy on the central bank’s board. Her departure gives President Trump the power to nominate a new governor, potentially reshaping Fed policy ahead of Chair Jerome Powell’s term ending in 2026. Trump has repeatedly criticized Powell and may use this opportunity to install a rate-cutting ally.
Trump Gains Fed Seat Opportunity – Quick Looks
- Adriana Kugler will retire from the Fed on August 8.
- Kugler’s departure opens a board seat for Trump to fill.
- Trump may use this opening to groom a Powell successor.
- Powell’s term as Fed Chair ends in May 2026, board term in 2028.
- Kugler was the first Hispanic woman on the Fed board.
- Trump has floated names like Kevin Hassett and Kevin Warsh.
- Trump has demanded aggressive interest rate cuts.
- Kugler supported Powell’s cautious stance on holding rates steady.
- Trump again called Powell a “moron” over rates this week.
- Kugler will return to Georgetown University this fall.
Fed Governor Adriana Kugler Resigns, Trump Gets Pick
Deep Look
Federal Reserve Governor Adriana Kugler will step down next week, creating a major opportunity for President Donald Trump to appoint a new member to the central bank’s influential Board of Governors. Kugler, whose term was set to continue until early 2026, will instead retire on August 8, returning to academia at Georgetown University.
Kugler’s departure not only gives Trump immediate sway over monetary policy by adding a new voice to the board—it also positions him to shape the future leadership of the Fed itself. The move has important implications as the president continues to criticize Fed Chair Jerome Powell for refusing to slash interest rates.
In her resignation letter, Kugler did not provide a reason for stepping down but said she was proud to serve “with integrity, a strong commitment to serving the public, and with a data-driven approach.” She emphasized her focus on labor markets and inflation during her tenure.
Kugler, appointed by former President Joe Biden in 2023, broke ground as the first Hispanic member of the seven-seat board. A labor economist by training, she previously served as the U.S. representative to the World Bank and was a respected professor at Georgetown before joining the Fed.
Trump Eyes Influence Over Fed Leadership
With this vacancy, Trump now holds the power to appoint a new Fed governor—a choice that could significantly shift the ideological balance of the board. Even more consequential, this appointee could be positioned to replace Powell as chair when his term expires in May 2026.
While Powell’s tenure as chair ends in 2026, his board seat runs until January 2028. If Powell opts to remain on the board after stepping down as chair—a scenario he has declined to confirm or deny—Trump could install a new chair by elevating whoever he names to Kugler’s vacated seat.
Historical precedent supports such a move. Marriner Eccles, a prominent Fed chair during the Great Depression and World War II, stayed on the board after his term as chair ended.
Trump’s Public Attacks on Powell Continue
Trump wasted no time expressing satisfaction over the chance to fill a Fed seat. “Very happy,” he said Friday, adding that he has “about three very good” candidates in mind. Among those mentioned are Kevin Hassett, Trump’s former top economic adviser, and Kevin Warsh, who served on the Fed board under President George W. Bush.
Earlier in the day, Trump renewed his verbal attacks on Powell, labeling him a “stubborn MORON” in a social media post. The criticism came after Powell announced the Fed would leave its benchmark interest rate unchanged, resisting Trump’s calls for immediate rate cuts amid global economic uncertainty.
Powell indicated the Fed needs more time to assess the economic impact of tariffs before making any adjustments—an approach in line with the central bank’s traditionally cautious methodology but at odds with Trump’s aggressive posture toward economic stimulus.
Kugler Supported Powell’s Cautious Strategy
Kugler aligned with Powell in her final public remarks as a Fed governor. Speaking two weeks before her resignation, she expressed support for holding rates steady while monitoring economic data and inflationary trends, including the effects of Trump’s recent trade policies.
This contrasts sharply with Trump’s push for lower rates, which he argues are necessary to support economic growth and keep America competitive globally. Critics, however, warn that excessive political pressure on the Fed could undermine the institution’s independence and erode confidence in U.S. monetary policy.
The Future of the Fed Under Trump
Trump’s desire to gain greater influence over the Federal Reserve is well-documented. He has openly called for the Fed board to “take control from Powell” and has floated a future in which appointees more loyal to his agenda guide policy. Kugler’s resignation gives him an opening to begin shaping the board’s direction in his favor.
As the economic stakes rise ahead of the 2026 Fed chair transition, the individual Trump appoints to replace Kugler will be closely scrutinized. Economists and political analysts alike will watch whether the nominee is a seasoned central banker or a political ally aligned with Trump’s views on interest rates and inflation.
For now, Kugler’s early departure marks a major shift at a critical moment for the U.S. economy—one that could reshape the Fed’s course for years to come.
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