Its ruler US Federal Bank, Adriana Kougler, announced that she was resigning to the Central Bank, creating a significant gap at a time when the president Donald Trump pushes to reduce interest rates.
In a letter to Donald Trump, 55 -year -old Kugler did not mention the reason for her decision to leave the US Federal Bank, noting that she would return to Georgetown University as a professor in the fall.
“It was a great honor for me to serve on the Board of Directors of the US Federal Bank,” Kugler wrote, according to CNBC.com. “I am very proud to have served at a critical time to achieve our double goal, namely reducing prices and maintaining a strong and durable labor market.”
Kugler’s term was due to end at the end of January 2026. Biden’s candidate joined the Board of Directors in September 2023, covering the term of Lael Brainard, who left to assume Biden’s financial adviser. As a member of the Board of Directors, Kugler was a permanent voter in the Federal Open Market Committee, which sets interest rates.
Her resignation now opens the way to Trump to appoint his own candidate for the Board of Directors. Two of his previous appointments, Christopher Waller and Michel Bowman, voted against the Wednesday’s meeting on Wednesday’s decision to maintain the Fed’s main interest rate, saying they wanted to reduce it. Kugler was absent from the vote.
She has recently expressed generally harsh views, stating her support for maintaining interest rates steady until the inflation of Trump’s duties on inflation is clearer.
Fed President Jerome Powell wished Kugler good luck, saying: “He brought impressive experience and academic knowledge to her work on the Board of Directors.”
The US president has stated that he will test all possible candidates and It will only support those who are in favor of reducing interest rates. In addition to Kougler’s departure, Powell’s term expires in May, though he could choose to remain in the position of Commander by 2028.
However, Kugler’s departure will allow Trump to find someone who shares his views on interest rates and who could be a candidate for Powell’s position. The president and some of his advisers have thought of the idea of a “shadowy president” who could actually act as a “annoying factor” on the board until Powell leaves.