Federal Reserve Governor Adriana Kugler Resigns Early, Opening Seat for Trump Appointee

Federal Reserve Governor Adriana D. Kugler submitted her resignation on August 1, 2025, effective August 8, stepping down months before her term was scheduled to end in January 2026. In her resignation letter addressed to President Trump, Kugler offered no explanation for her early departure, stating only that she would return to Georgetown University as a professor. She had served as a governor since September 13, 2023, after being nominated by President Biden and confirmed by the Senate in an 86-8 bipartisan vote.

Context: Trump responded to the resignation on Truth Social, stating: ‘‘Too Late’ Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned. She knew he was doing the wrong thing on Interest Rates. He should resign, also!’ The resignation created an immediate vacancy, giving Trump an opportunity to appoint someone aligned with his push for lower interest rates. A subsequent CNBC report raised questions about the circumstances of her resignation, though there is no indication Kugler did anything improper.

Significance: Kugler’s unexplained early resignation, following Trump’s sustained public attacks on Federal Reserve independence, accelerates Trump’s ability to stack the Fed with loyalists who will prioritize his political interests over sound monetary policy. This represents a significant step in the politicization of the Federal Reserve, an institution whose independence is crucial for economic stability. The resignation pattern mirrors tactics used to capture other independent agencies by pressuring officials until they resign, allowing replacement with partisan appointees.