Federal Reserve Governor Adriana Kugler Resigns Effective August 8

Federal Reserve Governor Adriana Kugler announced her resignation effective August 8, six months before her term was set to expire in January 2026, and will return to Georgetown University. Appointed in September 2023, Kugler's early departure creates the first vacancy on the Fed Board during President Donald Trump's second term, giving him the opportunity to nominate a replacement. This timing is significant as Trump has expressed strong criticism of the Federal Reserve's policies under Chair Jerome Powell and is expected to use this vacancy to influence the leadership succession, potentially appointing Powell's successor. There is speculation about several candidates Trump might consider, including Treasury Secretary Scott Bessent, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and current governors Christopher Waller and Michelle Bowman. Kugler's resignation comes amid heightened scrutiny of the Fed's monetary policy decisions and cost management, as well as ongoing debates over interest rate adjustments. Both Kugler and Powell emphasized their commitment to the Fed’s dual mandate of controlling inflation and supporting labor market resilience during this turbulent period.