Fed Governor Kugler Resigns, Trump to Fill Vacancy

Federal Reserve Governor Adriana D. Kugler has announced her resignation, effective August 8, creating a vacancy on the Board of Governors that President Donald Trump will be able to fill. Kugler, nominated by former President Joe Biden and serving since September 2023, is returning to her academic post at Georgetown University. Her departure comes amid heightened political tensions as Trump pressures the Fed to cut interest rates and questions persist about the future of Fed Chair Jerome Powell. The vacancy gives Trump the opportunity to nominate a replacement who could influence the balance of the 12-member Federal Open Market Committee, responsible for setting U.S. interest rates. The ensuing Senate confirmation process is expected to be contentious, highlighting concerns over the central bank's independence. Kugler expressed pride in her service during a period focused on reducing inflation and maintaining a strong labor market.