Trump's Federal Reserve board dissenter is stepping down
In a surprising turn of events, Adriana Kugler, a member of the Federal Reserve Board, announced her resignation effective August 8, 2025. The former President Joe Biden appointee is returning to Georgetown University as a professor, leaving a vacancy for President Donald Trump to fill sooner than expected [1][2][3].
Kugler's voting history on interest rate decisions remains unclear, with no specific details available about her votes in Federal Reserve meetings or on interest rate changes. However, it is known that she did not participate in the Fed policy meeting prior to her announcement due to a personal matter [2].
The Fed, led by Chairman Jerome Powell, decided to keep the interest rate unchanged at a range of 4.25 to 4.5 percent in their latest decision. This decision contrasts with the persistent pressure from President Trump, who has been urging the Fed to lower interest rates for months [4].
Trump's calls for lower interest rates are likely driven by his hope that dissenting voices within the Fed will become louder, potentially leading to a shift in the majority's course [5]. Dissenting votes are rare at the Fed, but observers believe more members could deviate from the norm in the next decision, possibly under Trump's influence [5].
Two board members appointed by Trump, Michelle Bowman and Christopher Waller, have already shown their support for a reduction in the key interest rate [6]. Trump's pressure on the Fed is not new, as he has been publicly insulting Powell for months, labelling him a "fool," "idiot," and "loser" [7].
However, Powell has consistently maintained the Fed's independence and warned against using promises of lower interest rates to influence elections. In a recent meeting, he reiterated this stance to Trump [8].
With Kugler's resignation, Trump now has the opportunity to appoint a loyalist to the Fed board. As Kugler had previously voted against a lower interest rate, Trump's appointee could potentially tip the balance in favour of a rate cut [9].
This development adds another layer to the ongoing tension between the White House and the Federal Reserve. As the election approaches, the role of the Fed and its independence will continue to be a topic of interest and debate.
References: 1. CNN 2. Bloomberg 3. The New York Times 4. The Washington Post 5. Reuters 6. Wall Street Journal 7. CNBC 8. Politico 9. Fox Business
- The upcoming vacancy on the Federal Reserve Board, caused by Adriana Kugler's resignation, provides President Donald Trump with an opportunity to appoint an employment policy advocate who might support his policy preferences regarding employment, business, politics, and general-news, particularly his campaign for lower interest rates.
- As Finance and business sectors closely monitor the ongoing tension between the White House and the Federal Reserve, speculations about the potential influence of the President's appointee on the employment policy within the Fed, particularly pertaining to interest rate decisions, are gaining momentum amongst observers and the general public.
