United States: Surprise resignation at the Fed, Trump "very happy" to be able to appoint a new central banker

Neither the press release nor her letter to Trump gave a reason for her early departure. When contacted, the Fed declined to comment further. Earlier this week, Adriana Kugler was unable to attend the Fed's Federal Open Market Committee (FOMC) meeting or vote on interest rates.

A central bank spokesperson had reported that it was for a "personal reason." On Friday, as he was leaving for a weekend at his New Jersey golf course, President Donald Trump said he was "very happy" about the vacancy. The Republican billionaire, who constantly calls for rate cuts, thus has the opportunity to bring a new face to the FOMC, which will have one vote out of twelve, earlier than expected. He can now propose a candidate whose nomination will have to be confirmed by the Senate, where his party has the majority.

The Stakes of Powell's Seat

The announcement comes at a complicated time for the Fed, whose chairman, Jerome Powell, is under continued pressure from Donald Trump . The institution is also beginning to experience disagreements over monetary policy, as the economy is shaken by the US government's protectionist offensive.

The Fed's latest monetary policy meeting, held without Kugler present, concluded with rates held at their current level and a rare disagreement between two governors, Michelle Bowman and Christopher Waller. "I will always be proud of the important work I did as Governor of the Federal Reserve," wrote Adriana Kugler in her letter to Donald Trump, released to the press.

She concluded by thanking Jerome Powell "for his unwavering commitment to the Federal Reserve and the American people." Jerome Powell is scheduled to chair the Fed until May 2026. He could theoretically remain there as a simple governor until January 2028. But Donald Trump is trying to accelerate his departure, hoping to place a like-minded person on the FOMC.