Federal Reserve Board Announces Departure of Governor Adriana D. Kugler
The U.S. Federal Reserve Board released a statement on Friday, August 1, confirming that Adriana D. Kugler will vacate her role as a Fed governor effective August 8. This development opens a vacancy that President Donald Trump is poised to fill with a new appointment.
Background on Kugler’s Appointment
Governor Kugler earned her appointment from former President Joe Biden in 2023, receiving a three‑year term that concludes in January 2026. The Fed’s announcement did not provide a specific rationale for her unexpected departure.
Governor Kugler’s Statement
- “It has been an honour of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Governor Kugler remarked.
- She added, “I am especially honoured to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labour market.”
Implications for the Federal Reserve
With Kugler’s exit, the Fed faces a key vacancy that could influence the policy direction under the new administration. President Trump’s forthcoming appointment will likely shape the next chapter of monetary policy in the United States.
Most Read on Euro Weekly News
Flying Ryanair in Spain? Brace for 76 strike days – here’s what you need to know
Ground crew strike mess hits Spanish airports
Will this 300-metre steel bull become Spain’s ‘Eiffel Tower’? The Madrid village making its play
‘Powell should resign,’ too
Trump Fires Biden‑Appointee, Calls for Powell’s Resignation
On Truth Social, President Trump stunned the nation by demanding that Fed Governor Powell step down and by condemning the resignation of Adriana Kugler, a Biden appointee who left the office amid allegations of improper interest‑rate decisions.
Powell’s Planned Exit
Trump highlighted that Powell’s resignation should mirror Kugler’s departure, asserting that the Fed governor was “doing the wrong thing on Interest Rates.” He urged an immediate replacement, calling for a “competent and qualified” successor.
Kugler Resignation and McEntarfer Firing
- Trump fired Erika McEntarfer, director of the Bureau of Labor Statistics, the same day Kugler stepped down.
- Biden’s appointee was accused of manipulating labor statistics for political reasons, though no evidence was provided.
- The firing did not link to Powell’s resignation, but both actions signaled Trump’s opposition to Biden’s appointments.
Trump’s Public Statement
In a bold Truth Social post, Trump declared: “I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified.” The President’s directive underscored his intent to overhaul Biden’s civil‑service appointments.
‘US job numbers were rigged’
Trump Accuses Job Data of Political Bias
Trump’s Latest Claim – The former president posted a statement suggesting that the U.S. job numbers had been “rigged” to tarnish both the Republican Party and his own reputation.
Impact on Economic Legitimacy
- AP Report – The allegation threatens to erode confidence in the government’s economic statistics, which have long been viewed as the global “gold standard.”
- Industry Acceptance – Decades of economists and Wall Street investors have treated the data as free from political bias.
Trump’s Fed Critique
Months of harsh criticism have targeted the Federal Reserve’s decision not to lower interest rates. Kugler’s resignation opens the door for Trump to appoint new delegates at a time when policy makers are unusually divided.
Unclear if Trump can demote Power
Potential Fed Leadership Shift
Candidate Selection: Trump’s choice to replace Kugler opens a pathway for the next Federal Reserve chair—should the Senate confirm the appointment. According to Reserve statutes, the chair must come from the existing board members.
Procedural Ambiguity: Federal Regulations do not clarify whether Trump can demote Powell and promote another governor to the chair position, as noted by CNN.
Powell’s Governorship: Powell’s term as a board governor expires in 2028. At a Wednesday news conference, Powell declined to state whether he plans to stay on the board after the chair tenure concludes.
