By Olivier Acuña Barba •
Published: 02 Aug 2025 • 20:54
• 2 minutes read
The US Fed Reserve announced the resignation of Adriana Kugler as Governor of the Board | Credit: lucasImages/Shutterstock
The US Federal Reserve Board on Friday (Aug. 1st) announced that Adriana D. Kugler will leave her post as Fed governor on August 8th, opening up the spot for President Donald Trump to fill with an appointee.
Kugler was appointed by former President Joe Biden in 2023 for a three-year term ending in January 2026. The Fed’s statement did not cite a reason for Kugler’s departure.
“It has been an honour of a lifetime to serve on the Board of Governors of the Federal Reserve System,” said Governor Kugler. “I am especially honoured to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labour market.”
‘Powell should resign,’ too
Trump reacted to the resignation on Truth Social, saying, “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!
Kugler’s resignation was announced the same day Trump fired Erika McEntarfer, the director of the Bureau of Labour Statistics, whom Biden appointed, alleging she manipulated labour statistics for political reasons. The president provided no evidence for the charge, which is not linked to the Fed governor’s resignation.
“I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified,” he posted on Truth Social.
‘US job numbers were rigged’
Trump later posted: “In my opinion, today’s Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad.”
The charge that the data was faked is severe and threatens to undermine the political legitimacy of the U.S. government’s economic data, which has long been seen as the “gold standard” of economic measurement globally, the AP wrote. Economists and Wall Street investors have for decades generally accepted the data as free from political bias.
Trump has harshly criticised the Fed for months because the central bank hasn’t lowered interest rates, and Kugler’s resignation means he will soon be able to install a new voice at a time when policymakers are unusually divided.
Unclear if Trump can demote Power
Whoever Trump picks to replace Kugler will then be eligible to be the next Fed chair, if the Senate confirms them 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.
It’s legally unclear if Trump has the power to demote Powell and elevate another governor as chair, CNN wrote.
Powell’s term as a Fed governor ends in 2028. In a news conference on Wednesday, Powell refused to say if he intends to remain on the board after his term as chair ends.
