The news of Kugler's resignation offers Trump an early opportunity to shape the Fed's leadership as he continues to push for lower interest rates.

Federal Reserve Governor Adriana Kugler will step down effective August 8. She was appointed by former President Joe Biden in 2023, and her term was scheduled to end in January 2026.

The Federal Reserve did not specify a reason for her resignation in a press release announcing her departure.

“Dr. Kugler, who has served as governor since September 13, 2023, submitted her letter of resignation to President Trump and will return to Georgetown University as a professor this fall,” the statement said.

“It has been my honor to serve on the Board of Governors of the Federal Reserve System,” Governor Kugler said. “I am especially honored to have served during a pivotal time in achieving our dual mandate: lowering prices and maintaining a strong and resilient labor market.”

“I appreciate Dr. Kugler’s service on the Board and wish her every success in her future responsibilities,” said Federal Reserve Board Chairman Jerome Powell. “She brought impressive experience and academic knowledge to her work on the Board.”

President Trump told reporters Friday that Kugler was resigning because of the Federal Reserve’s stance on interest rates, according to CNN.

“My understanding is that it was because she disagreed with someone in her party… she disagreed with ‘Too Late’ on the interest rate,” he said. Trump has started calling Federal Reserve Chairman Jerome Powell “Too Late” because the president wants Powell to lower interest rates. Federal Reserve officials have kept interest rates steady so far this year.

Trump offered no evidence for his claim. But he said he was “very happy” to have a vacant seat on the Federal Reserve Board.

And later, on social media, he also used Kugler’s resignation to pressure Powell.

“Powell should resign ‘too late,’ as should Biden appointee Adriana Kugler. She knew he was doing wrong on interest rates. He should resign too!” Trump said on Truth Social.

Adriana Kugler was confirmed by the Senate on September 7, 2023, to the Federal Reserve Board of Governors, becoming the first Hispanic woman on the board in its then 109-year history.

Biden chose Adriana Kugler, a Colombian-American labor economist and U.S. managing director of the World Bank, to fill the only open governor's seat on the Fed's seven-member board of governors.

The prominent Latina's nomination was endorsed by Senator Chuck Schumer, the Democratic Senate Majority Leader.

Dr. Kugler, a Colombian-American, previously served as the U.S. managing director of the World Bank. She was nominated to that position by President Joe Biden and confirmed by the Senate in April 2022. She also worked as a professor of public policy and economics at Georgetown University. Trump has been a harsh critic of the Federal Reserve for months because the central bank hasn't lowered interest rates this year, and Kugler's resignation means he could soon install a new voice at the institution. And whoever Trump chooses will also be eligible to be the next chair of the Federal Reserve, if confirmed by the Senate to serve on the board. Because under Federal Reserve rules, its chairman can only be chosen from among the current members of the board of directors.

The Federal Reserve is structured to be insulated from day-to-day political pressure, meaning it operates independently of the White House and isn't subject to Congress's annual appropriations process.

But the president nominates each of its seven governors and also designates one of them to serve as chairman for a four-year term. The Senate confirms the nominees.

Trump on Friday ordered the firing of Erika Mc Entarfer, commissioner of the Labor Department's Bureau of Labor Statistics, after reports released that day by the Bureau of Labor Statistics (BLS) revealed that the government managed to create 73,000 jobs in July, a figure lower than the 100,000 projects reported by various analysts.

However, what was most disconcerting was that job growth in May and June was also allegedly much lower than the more than 258,000 jobs initially reported.

Two years ago, Joe Biden appointed Erika McEntarfer as chief labor statistician, and then in January 2024, the economics doctor was confirmed by the Senate in a vote of 86 to 8, reflecting her strong performance.