Federal Reserve Governor Adriana Kugler is resigning from the Fed Board effective August 8th, the Fed said in a Friday statement. Dr. Kugler has served as a governor since September 13, 2023. According to the current Fed Governor, she will be returning to teach at Georgetown University this Fall.
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” said Governor Kugler. “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.”
Kugler’s resignation comes at a time when the Fed is swimming in hot water. After refusing to cut interest rates in their July 30 meeting, the regulator has been under fire from the Trump administration. Especially receiving backlash is Fed Chair Jerome Powell, who is also facing calls to resign from his post or be fired. It’s unclear if similar pressure got to Fed Governor Kugler or influenced her decision to resign.
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“I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors,” said Federal Chair Powell. “She brought impressive experience and academic insights to her work on the Board.” A replacement will likely be chosen by Trump in the next few weeks, but there is no frontrunner candidate as of now. Furthermore, if Powell were to resign next, it would leave an even wider hole in the Fed’s leadership amid a crucial time for the US economy.
