The Federal Reserve Board is facing an unexpected shake-up. On August 5, Federal Reserve Governor Adriana Kugler submitted her resignation to U.S. President Donald Trump, leaving the central bank just shy of her two-year anniversary. Her last day will be August 8. Kugler's sudden departure has reignited speculation about who will succeed Jerome Powell as Fed Chair when his term expires in May 2026.
Details of Kugler's Resignation
Kugler, 55, holds a Ph.D. in Economics from the University of California at Berkeley and previously served as Chief Economist at the Department of Labor and U.S. Executive Director at the World Bank. After leaving the Fed, she will return to Georgetown University as a professor of Public Policy and Economics. The departure of the Biden appointee is widely seen as the latest sign of strained relations between the Trump administration and the central bank.
Trump Takes Aim at Powell
President Trump wasted no time in reacting on Truth Social: "'Too Late' Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned. She knew he was doing the wrong thing on Interest Rates. He should resign, also!" The president has repeatedly criticized Powell's rate decisions, and with the Chair term expiring in 2026, Trump is eager to install a like-minded leader.
New Chair Candidates Emerge
During a CNBC interview on Tuesday, Trump revealed that the next Fed Chair will come from a shortlist of four individuals: current Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and National Economic Council Director Kevin Hassett. However, Treasury Secretary Scott Bessent has indicated he prefers to remain in his current role. "Both Kevins are very good, and there are other people that are very good too," Trump explained. "I love Scott, but he wants to stay where he is…He likes being Treasury secretary."
The leadership shake-up comes at a critical time as U.S. inflation data remains volatile and the direction of monetary policy is uncertain. Markets will be closely watching Trump's eventual nomination in the coming months.