A member of the Federal Reserve’s Board of Governors announced Friday that she is resigning several months before the end of her term, handing President Donald Trump an early opportunity to fill a key vacancy.
Fed Governor Adriana Kugler is stepping down from her role, effective August 8. She was appointed by former President Joe Biden in 2023 and her term was slated to end in January 2026.
The Fed did not cite a reason for her departure.
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said in a statement. “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 claimed to reporters on Friday that Kugler was resigning because of the Fed’s stance on interest rates.
“I understand it was over the fact that she disagreed with somebody from her party …she disagreed with ‘Too Late’ on the interest rate,” he said. Trump has taken to calling Fed Chair Jerome Powell “Too Late” because the president wants Powell to cut interest rates. Fed officials have held interest rates steady so far this year.
Trump did not offer any evidence to back his claim.
But, he said, he was “very happy” about having an open spot on the Fed Board.
And later, on social media, he used Kugler’s resignation to pile more pressure onto Powell, as well.
“’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!” Trump said on Truth Social.
Kugler was absent from the Fed’s latest meeting, in which officials voted to hold borrowing costs steady for the fifth consecutive time.
Trump has bashed the Fed for months because the central bank hasn’t lowered interest rates this year, and Kugler’s resignation means he will soon be able to install a new voice at a time when policymakers are unusually divided.
And whoever Trump picks will then be eligible to be the next Fed chair, if they’re confirmed by the Senate to serve on the Fed’s board. According to Fed rules, the chair can be chosen only among the current members of the Fed’s board.
Treasury Secretary Scott Bessent has said the administration is already actively searching for Powell’s successor.
Contenders for the top job at the central bank include Bessent himself; Kevin Warsh, a former Fed governor; Christopher Waller, a current Fed governor; and Kevin Hassett, the director of the White House’s National Economic Council.
But even when Powell’s term as chair ends next year, he could still stay on the board, meaning Trump’s choices for Fed chair will be limited to the current members of the board.
Fed chairs technically have three jobs: member of the Fed’s Board, chair of the Board of Governors and chair of the Federal Open Market Committee (FOMC). The FOMC is the Fed group that sets interest rates, and the chair is voted into their position by committee members.
It’s legally unclear if Trump has the power to demote Powell and elevate another governor as chair.
Powell’s term as a Fed governor ends in 2028. In a news conference Wednesday after the Fed announced its latest decision, Powell refused to say if he intends to remain on the board after his term as chair ends.
CNN’s Kit Maher contributed reporting.
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