Federal Reserve Governor Adriana D. Kugler will resign effective August 8, the central bank announced Friday. Kugler, who joined the Board of Governors on September 13, 2023, submitted her resignation to President Donald Trump and will return to Georgetown University as a professor this fall.
“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said, adding she was proud to help achieve the Fed’s dual mandate of lowering inflation while maintaining a resilient labor market.
Fed Chair Jerome Powell praised her contributions, citing her academic expertise and work across several committees, including the Committee on Financial Stability and the Subcommittee on Smaller Regional and Community Banking. Kugler also represented the Board internationally and visited 10 of the 12 Federal Reserve districts during her tenure.
Originally slated to serve until January 2026, Kugler’s early departure comes as the Trump administration intensifies calls for interest rate cuts amid ongoing economic pressures. The resignation coincides with discussions about the Fed’s leadership future, as Powell’s term as chair is set to end in May 2026. Treasury Secretary Scott Bessent has hinted the administration may nominate a successor to Kugler who could later be considered for the chair role.
Kugler’s exit marks another pivotal moment for U.S. monetary policy as debates over rate adjustments and the central bank’s direction continue. Her departure adds to speculation about how the administration’s upcoming appointments could reshape the Federal Reserve’s approach in the months ahead.