On Friday, the Federal Reserve announced Adriana D. Kugler, a member of its Board of Governors, is resigning early in a move that will allow President Donald Trump to select her replacement amid ongoing tensions with Jerome Powell, the body’s chair.

Newsweek contacted the Federal Reserve for comment via online inquiry form on Saturday outside of regular office hours.

Why It Matters

Trump has launched a series of scathing attacks on Powell over his refusal to reduce interest rates. The president claimed that the central banker is “TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair” in a post on his Truth Social website on Thursday.

Kugler’s decision to resign from her position on August 8, ahead of her term’s planned ending on January 31, 2026, will allow Trump to appoint a loyalist who shares his position on interest-rate cuts.

What To Know

In a statement released on Friday, the Federal Reserve Board said Kugler is stepping down from her position as governor effective August 8, and returning to Georgetown University in the fall.

This will allow Trump to select a replacement to finish Kugler’s term; there has been some speculation he could pick someone who could potentially become chair if Powell is fired, or when his term ends in May 2026.

Earlier this week, the Federal Open Market Committee, made up of 12 members including seven from the Federal Reserve System’s Board of Governors, chose to leave its interest-rate target at between 4.25 percent and 4.5 percent. This is due to concern over the impact Trump’s tariffs and tax cuts could have on inflation.

Hiring data released on Friday showed the nonfarm payroll in the U.S. rose by just 73,000 last month, substantially below what had been expected.

On Friday, Trump responded to the lack of a Federal Reserve rate cut by describing Powell as “a stubborn MORON.” The president also fired Erika McEntarfer, the commissioner of Labor Statistics, claiming without providing evidence that the latest job figures were rigged against him.

What People Are Saying

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

“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.”

Federal Reserve Board Chair Powell said: “I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors.

“She brought impressive experience and academic insights to her work on the Board.”

Speaking to Reuters, Derek Tang, an analyst for research firm LH Meyer, said: “I would not read any political motivation into what [Kugler is] doing, although the consequence of what she’s doing is she’s calling Trump’s bluff.

“She’s putting the ball in his court and saying, look, you’re putting so much pressure on the Fed, and you want some control over nominees, well, here’s a slot.”

What Happens Next

Trump is likely to appoint Kugler’s replacement in the coming days. It remains to be seen whether he will also fire Powell or allow him to conclude his term, which finishes in May 2026.