Trump to appoint new Federal Reserve Governor as Kugler resigns from position
Adriana Kugler, the first Hispanic governor of the Federal Reserve, has announced her resignation, effective August 8, 2025. This vacancy presents an opportunity for President Trump to appoint a new member to the Federal Reserve Board, a move that could potentially alter the balance of power within the Federal Open Market Committee (FOMC).
Before joining the Fed, Kugler was a professor at Georgetown University and the U.S. representative to the World Bank. She was appointed by former President Joe Biden in September 2023. Kugler has expressed support for Jerome Powell's view that the central bank should keep rates unchanged.
Trump has stated his intention to appoint Fed officials who favour cutting rates. Several potential candidates for the vacant position have been floated, including Kevin Hassett, a former top economic adviser to Trump; Kevin Warsh, a former Fed governor from 2006 to 2011; current Fed governor Christopher Waller; and Scott Bessent.
Interestingly, Marriner Eccles, who served as Fed chair in the 1930s, remained on the board after completing his term as chair. If Powell chooses to remain on the board after stepping down as chair, he could be one of seven governors. However, Powell has declined to answer whether he will leave the board when he is done as chair at the last two press conferences. His term as chair ends in May 2026.
Trump's administration could appoint a person to replace Kugler as governor, and then elevate them to Fed chair in May 2026. This is not without precedent, as Powell himself was a governor before being appointed chair.
The Corporation for Public Broadcasting, meanwhile, is set to shut down after being defunded by Congress and targeted by Trump. This move has raised concerns about the future of public broadcasting in the United States.
As Kugler prepares to return to the Georgetown faculty in the fall, the search for her replacement continues. The outcome of this appointment could have significant implications for U.S. monetary policy and the economy as a whole.
- Adriana Kugler's departure from the Federal Reserve Board presents a job opportunity for President Trump, allowing him to potentially reshape the economy through policy-and-legislation by appointing a new member.
- The candidate pool for the vacant position includes Kevin Hassett, former economic adviser to Trump, Kevin Warsh, a former Fed governor, Christopher Waller, current Fed governor, and Scott Bessent.
- Interestingly, Marriner Eccles, a past Fed chair, stayed on the board after his term ended, and Powell, who supports unchanged rates, could follow suit, impacting the balance of power within the FOMC.
- The closure of the Corporation for Public Broadcasting, targeted by Trump, has raised concerns about the future of general-news in the United States, potentially leaving a gap in information dissemination.
