Kugler resigns from Fed Board...Trump gains FOMC nomination authority

According to CNBC on the 1st (local time), Adriana Kugler, a member of the U.S. Federal Reserve System (Fed) Board, announced her resignation. As a result, President Donald Trump now has the chance to nominate a new member to the Federal Open Market Committee (FOMC), which determines the benchmark interest rate.

In a letter to President Trump, Kugler stated that she would return to her professorship at Georgetown University this fall and would step down from her position on the Fed Board.

She remarked, "It was an honor to serve as a Fed Governor at such a critical time for achieving the Fed’s dual mandate of price stability and a strong labor market."

Kugler joined the Fed Board in September 2023, nominated by former President Joe Biden, to complete the remainder of former Governor Lael Brainard’s term, which was set to expire in January 2026. As a Fed Governor, she held permanent voting rights on the FOMC.

With Kugler’s resignation, President Trump will now be able to appoint a new member who is supportive of his policy line favoring a rate cut. In fact, Michelle Bowman and Christopher Waller, both appointed by Trump, previously opposed holding the benchmark rate steady at the latest FOMC meeting and supported a rate cut. Kugler did not participate in that meeting.

Recently, Kugler had displayed a somewhat hawkish stance and expressed that, considering the impact of Trump’s tariff policies on inflation, rates should be maintained.

Fed Chair Jerome Powell stated, "Governor Kugler made great contributions to the Fed Board based on her academic insight and experience," and wished her well in her future endeavors.