Abrupt resignation at Federal Reserve has big implications for Trump

Despite the turmoil over poor job growth numbers on Friday, President Donald Trump scored a major victory with the resignation of a Federal Reserve Board member.

Adriana D. Kugler submitted her resignation letter to Trump, effective Aug. 8, so she can return to teaching at Georgetown University. She has served as a governor on the board since September 2023.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said in a statement. “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.”

Trump has moaned for months about Fed Chair Jerome Powell in an attempt to get him to resign for not following orders on interest rates, but this could be the next best thing, now that Trump has a board vacancy he can fill with an ally.

"Her decision to step down also comes as Trump and top administration officials ramp up their search for whom will replace Fed Chair Jerome Powell when his term leading the central bank ends in May 2026," Bloomberg reported. "Treasury Secretary Scott Bessent had suggested the administration might nominate someone to first fill Kugler’s seat and then later move to elevate that person to chair."

Read the Bloomberg report here.