Federal Reserve Governor Adriana Kugler submitted a letter of resignation Friday, giving President Donald Trump an open seat to fill on the central bank’s board.
Kugler, whose term was to end Jan. 31, 2026, will resign effective Aug. 8. She was not present for this week’s meeting of the Federal Open Market Committee (FOMC) due to what was called a “personal matter” by the Fed. The Fed held rates in place at the meeting for the fifth consecutive time.
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler stated in a press release posted on the Federal Reserve website. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”
Trump has been pressuring the Fed and its Chair Jerome Powell to lower interest rates, which has not happened so far this year. Trump has also been looking for a replacement for Powell when his term as chair ends in May 2026. He will have the opportunity to appoint someone to Kugler’s seat, with the intention of later moving that person to the chair position. This “shadow chair” could serve as a way to undermine Powell during the remainder of his tenure.
Some people Trump is said to have considered include National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh and Treasury Secretary Scott Bessent, who last year suggested the shadow chair idea.
Another sitting Fed governor, Christopher Waller, joined fellow Fed governor Michelle Bowman in breaking ranks with the rest of the board at the FOMC, calling for an interest rate decrease. Waller is also considered as a possible choice to replace Powell.
Kugler has served as a Fed governor since Sept. 13, 2023. She will return to Georgetown University as a professor this fall.
“I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors,” Powell stated in the release. “She brought impressive experience and academic insights to her work on the Board.”
