Federal Reserve Governor Kugler steps down, giving Trump slot to fill

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WashingtonPresident Donald Trump will be allowed to fill the vacancy on the Federal Reserve’s influential board when Governor Adriana Kugler steps down next week, the Fed confirmed Friday.

Kugler would have finished her term in January, but she did not attend the Fed’s policy meeting earlier this week. Rather, on August 8, she will retire. In her letter of resignation, she gave no explanation for her departure.

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Since Fed chair Jerome Powell said on Wednesday that the central bank would maintain its short-term interest rate at its current level, Trump has persisted in attacking the Fed. Powell added that before deciding to lower rates as Trump has urged, the Fed may wait months to assess the effects of tariffs on the economy.

Before the release of the monthly jobs report, Trump wrote early Friday morning, “Powell is a stubborn MORON, must significantly lower interest rates, NOW.” According to those reports, hiring slowed in July and was significantly lower in May and June than first thought.

In September 2023, former President Joe Biden named Kugler to the Fed’s seven-member board of governors. Before joining the Fed, she was the U.S. representative to the World Bank and a professor at Georgetown University. She was also the first Hispanic governor of the Federal Reserve. In the fall, she will rejoin the Georgetown faculty.

In her letter of resignation, she stated, “I am proud to have approached this role with integrity, a strong commitment to serving the public, and a data-driven approach strongly based on my expertise in labor markets and inflation.”

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