Federal Reserve governor resigns, opening way for a Trump choice

Adriana Kugler announced she's stepping down as Federal Reserve governor, giving President Trump a shot at filling the spot.

Ms. Kugler’s term was set to end in January, but she will instead finish on Friday. She has served as governor since September 2023.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” she wrote in her resignation letter Friday. “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.”

She didn't give a reason for her resignation.

Ms. Kugler, a Democrat, was the first Hispanic Fed governor. Prior to starting on the board, she was a professor at Georgetown University and was the U.S. representative to the World Bank.

“I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation,” she wrote.

She will return to Georgetown in the fall.

The open board seat gives Mr. Trump the opportunity to appoint someone who could be a replacement for Fed Chair Jerome Powell, whose term ends in May.

Mr. Trump has continuously attacked Mr. Powell for how he runs the Fed and for not lowering interest rates. The president made comments suggesting he could fire Mr. Powell, but has since said he wouldn’t oust him.

“‘Too Late, Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned,” Mr. Trump wrote in a Truth Social post Friday. “She knew he was doing the wrong thing on Interest Rates. He should resign, also!”

The president told reporters he's “very happy” for the open spot that he can fill.

When asked about potential candidates, he said he had “about three very good — I’ve got a lot of good candidates.”