Federal Reserve Governor Adriana Kugler, who holds one of the seven seats on the Fed’s Board of Governors, will step down from her position on August 8, 2025.
Her resignation comes months ahead of her term’s official end in January 2026, creating an unexpected vacancy that President Trump will now have the opportunity to fill.
Kugler joined the Board of Governors in September 2023 after being nominated by President Biden and confirmed by the Senate.
She was the first Latina to serve on the Fed’s board. Her early departure will allow her to return to academia, where she plans to resume teaching at Georgetown University’s McCourt School of Public Policy this fall.
She did not attend the Federal Open Market Committee (FOMC) meeting earlier this week and did not give a specific reason for her decision to retire early.
Her exit leaves a significant opening in the Fed’s leadership as it continues to manage inflation concerns and evaluate future interest rate moves.
President Trump now has the chance to appoint a new Fed governor, a move that could shift the direction of monetary policy.
He has been openly critical of the current Fed leadership and may look to appoint someone aligned with his economic outlook.
The new appointee could also become a potential candidate to succeed Jerome Powell when his term as chair ends in May 2026, though Powell could legally remain on the board through 2028.
With key policy debates ahead, Kugler’s early resignation injects new political dynamics into the central bank’s leadership structure.