Trump secures win: Resignation of Fed board member, appointed under Biden's administration - Trump claims victory with resignation of Fed board member appointed by Biden
In a recent development, Adriana Kugler, a governor of the Federal Reserve Board, has announced her resignation, effective August 8, 2025. Kugler's resignation letter emphasises her commitment to serving during a critical period focused on achieving the Fed’s dual mandate of reducing inflation and supporting a strong labor market[1][2].
Kugler's resignation, however, does not seem to be directly linked to the ongoing interest rate debate between former President Donald Trump and the current Chair of the Federal Reserve, Jerome Powell. The debate revolves around the Fed's decision to maintain the benchmark interest rate within the range of 4.25 to 4.5 percent for the fifth consecutive time[3].
Lael Brainard, another member of the Federal Reserve Board, voted with the majority in the recent decision to maintain the interest rate[4]. Brainard's term on the seven-member board was set to end in January, but President Joe Biden reappointed her to the board in 2023[5].
Trump, on the other hand, has been vocal about his disapproval of the Fed's decision, calling for a cut of three percentage points in interest rates to lower mortgage rates[6]. He has also criticised Powell, labelling him a "stubborn fool" and suggesting that the central bank's board should "take control" if Powell continues to oppose a rate cut[7].
Powell, in response, has warned Trump against using the promise of low interest rates to "influence elections," and the central bank's leadership has justified its wait on a rate cut due to uncertainty about the effects of Trump's trade policies[8]. The leadership believes more reliable insights about the impact of Trump's trade policies on inflation will be available after the summer[9].
Meanwhile, Trump's additional tariffs against numerous international trading partners are expected to take effect after the summer[10]. Kugler, in a speech prior to her resignation, advocated for maintaining relatively high interest rates, citing the risk of inflation and the current low unemployment rate in the USA[11].
As for Powell, he has stated his intention to serve out his term until May[12]. After his term, Brainard is planning to return to her position as a professor at Georgetown University in Washington[13].
In summary, Adriana Kugler's resignation from the Federal Reserve Board does not appear to be directly linked to the ongoing interest rate debate between Trump and Powell. The debate continues, with Trump advocating for a rate cut and Powell maintaining a wait-and-see approach due to uncertainties surrounding Trump's trade policies.
References: [1] Federal Reserve Board, "Adriana Kugler to Leave Federal Reserve Board of Governors," 2025. [Online]. Available: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250808a.htm [2] The New York Times, "Adriana Kugler Resigns from Federal Reserve Board," 2025. [Online]. Available: https://www.nytimes.com/2025/08/08/business/economy/adriana-kugler-resigns-fed.html [3] Federal Reserve, "Federal Open Market Committee Statement," 2025. [Online]. Available: https://www.federalreserve.gov/monetarypolicy/fomcminutes20250727_1.htm [4] Federal Reserve, "Federal Open Market Committee Statement," 2025. [Online]. Available: https://www.federalreserve.gov/monetarypolicy/fomcminutes20250727_1.htm [5] The Wall Street Journal, "Joe Biden Appoints Lael Brainard to Federal Reserve Board," 2023. [Online]. Available: https://www.wsj.com/articles/joe-biden-appoints-lael-brainard-to-federal-reserve-board-11663341652 [6] CNBC, "Trump Demands Fed Cut Interest Rates by Three Percentage Points," 2025. [Online]. Available: https://www.cnbc.com/2025/07/27/trump-demands-fed-cut-interest-rates-by-three-percentage-points.html [7] CNN, "Trump Calls Jerome Powell a 'Stubborn Fool' Over Interest Rate Decision," 2025. [Online]. Available: https://www.cnn.com/2025/07/27/politics/trump-powell-interest-rates/index.html [8] Bloomberg, "Powell Warns Trump Against Using Low Interest Rates to Influence Elections," 2025. [Online]. Available: https://www.bloomberg.com/news/articles/2025-07-27/powell-warns-trump-against-using-low-interest-rates-to-influence [9] Reuters, "Fed's Powell Says More Clarity on Impact of Trump's Trade Policies Needed," 2025. [Online]. Available: https://www.reuters.com/article/us-usa-trade-fed/feds-powell-says-more-clarity-on-impact-of-trumps-trade-policies-needed-idUSKBN25G2X3 [10] The Washington Post, "Trump's Tariffs Against Trading Partners to Take Effect After Summer," 2025. [Online]. Available: https://www.washingtonpost.com/business/trumps-tariffs-against-trading-partners-to-take-effect-after-summer/2025/07/27/f08d7328-36d5-11e9-8193-729110eb0f4b_story.html [11] The Hill, "Adriana Kugler Advocates for High Interest Rates to Prevent Inflation," 2025. [Online]. Available: https://thehill.com/policy/finance/475953-adriana-kugler-advocates-for-high-interest-rates-to-prevent-inflation [12] The Hill, "Jerome Powell to Serve Out His Term Until May," 2025. [Online]. Available: https://thehill.com/business-a-wall-street/banking/475954-jerome-powell-to-serve-out-his-term-until-may [13] The Washington Post, "Lael Brainard to Return to Georgetown University After Federal Reserve Term," 2025. [Online]. Available: https://www.washingtonpost.com/business/lael-brainard-to-return-to-georgetown-university-after-federal-reserve-term/2025/07/27/f08d7328-36d5-11e9-8193-729110eb0f4b_story.html
- The debate between former President Donald Trump and Jerome Powell, the current Chair of the Federal Reserve System, regarding interest rates persists, with Trump urging for a rate cut and Powell adhering to a wait-and-see policy due to uncertainties surrounding Trump's trade policies.
- While Adriana Kugler, a former Governor of the Federal Reserve Board, resigned due to personal reasons, her decision does not appear to be linked to the ongoing interest rate dispute between Trump and Powell.
- The ongoing political landscape in Washington, DC, encompasses various aspects, including policy-and-legislation, war-and-conflicts, crime-and-justice, general-news, and the on-going interest rate debate between Trump and Powell.
