Washington —Federal Reserve governor Adriana Kugler will step down early from her post on the central bank's board, the Fed announced Friday, creating an open position for President Trump to fill. The vacancy comes at a critical time for Mr. Trump, who has pressured the Fed to cut interest rates. Kugler's replacement will sit on a 12-member committee that sets interest rate targets. Kugler was nominated to serve as a governor by former President Joe Biden and has been in the role since September 2023. She filled an unexpired term set to end Jan. 31, according to the central bank. Kugler's resignation is effective Aug. 8. Kugler is returning to Georgetown University to serve as a professor, according to the Fed. "The Federal Reserve does important work to help foster a healthy economy and it has been a privilege to work towards that goal on behalf of all Americans for nearly two years," Kugler said in herresignation letterto Mr. Trump. "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." The seven members of the Fed's Board of Governors are nominated to 14-year terms. Mr. Trump has in recent weeks been critical of the Fed for not acting fast enough to lower interest rates, and has repeatedly directed his frustrations at Federal Reserve Chair Jerome Powell. Mr. Trump on Friday called Powell a "disaster," and he has suggested in the past that the chair should be fired or step down before his term ends next year. The central bank's Federal Open Market Committee said Wednesday that it would bekeeping its benchmark interest rate unchanged, sparking renewed complaints from the president. Two committee members dissented from the decision and said they supported rate cuts, and Kugler did not vote. Firing Powell would likely trigger a legal battle, as a president can only remove a member of the Fed's Board of Governors for "cause." The president and White House officials have in recent weeks homed in on the renovation of the Fed's 90-year-old headquarters in Washington, D.C., the cost of which has ballooned to more than $2.5 billion. Mr. Trumpvisited the renovation projectwith Powell last week, during which he reiterated his desire for interest rates to come down. When asked about firing Powell, the president said it is a "big move." "I just don't think it's necessary," Mr. Trump said. "And I believe he's going to do the right thing." Arkansas officials reveal new details about Devil's Den murders of husband and wife U.S. officials visit Gaza aid site amid global outcry over humanitarian crisis Teen who helped co-workers on graduation night pursues his dream
