Biden-Appointed Fed Governor Resigns As Trump Calls For Interest Rate Cuts
Federal Reserve Governor Adriana Kugler, a Biden-era appointee, announced her resignation on Friday, just days after the central bank once again defied President Donald Trump’s calls for interest rate cuts by holding rates steady for the fifth consecutive meeting.
Kugler, who joined the Board of Governors in 2023, will leave the Fed to accept a professorship at Georgetown University this fall. Though she did not cite political pressure as a factor, her departure comes at a pivotal moment as Trump moves aggressively to reshape the Fed and push back against what he has called an “anti-growth, anti-American” monetary policy legacy left behind by Biden-appointed officials.
“It has been an honor of a lifetime to serve,” Kugler said in her resignation letter, offering a carefully worded reflection on her time at the Fed. “I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”
Kugler’s term was originally set to expire in January 2026, meaning her early exit hands Trump yet another opportunity to tip the balance of the board in favor of pro-growth voices. Her resignation comes amid mounting pressure from Trump and his allies to slash interest rates and supercharge the economy.
The president has grown increasingly frustrated with the Federal Reserve’s refusal to act. “If Powell continues to refuse to cut rates,” Trump warned Friday, “the board SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!” His post followed the Fed’s decision on Wednesday to keep the federal funds rate locked in the 4.25% to 4.5% range—despite widespread signals that inflation is cooling and U.S. capital inflows are booming.
Trump’s two sitting Fed appointees, Christopher Waller and Michelle Bowman, dissented from the decision to hold rates steady. Both have called for immediate cuts, warning that delaying action risks harming the broader economy just as it gains momentum under renewed Trump-era fiscal and trade policies.
With Kugler out, the president will now get a third nominee on the board—and he’s just months away from selecting a new Fed Chair, with Jerome Powell’s term set to expire in May 2026. Both Waller and Bowman are considered top contenders to replace Powell, who has come under fire from conservatives for what they see as politically motivated monetary inaction.
Though Powell offered no indication that rate cuts are coming at the Fed’s next meeting in September, Trump appeared confident. “Right now, there’s no inflation. Everybody thought there would be,” he said Wednesday. “All we have is billions of dollars of cash flowing into our country.”
Fed Chair Powell, in a press conference, insisted the board would continue to rely on upcoming data and economic conditions before making a decision. “We don’t do that in advance,” he said.
But Trump isn’t waiting. He’s making it clear that he intends to put the Fed back on track with a leadership team committed to low interest rates, strong growth, and a sound dollar—without the political gamesmanship that marred the central bank under his predecessor.
With Kugler gone and Powell’s days numbered, the Federal Reserve is now poised for a major shift in direction—one that aligns with Trump’s America First economic agenda.