Federal Reserve Governor Kugler, part of the committee that sets interest rates, is resigning

Federal Reserve Governor Adriana Kugler announced Friday she is stepping down from her role at the central bank, creating an important vacancy at a time when President Donald Trump is pushing for lower interest rates.

In a letter addressed to Trump, Kugler did not state a reason for her decision to leave, only noting that she will be returning to Georgetown University as a professor in the fall.

"It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System," Kugler wrote. "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."

Kugler's term was set to expire at the end of January 2026.

Her resignation now paves the way for Trump to put his own nominee in for the Board of Governors. Two of his prior appointments, Christopher Waller and Michelle Bowman, voted against the decision at Wednesday's meeting to hold the Fed's key rate steady, instead indicating they wanted to lower.

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