Successor Likely to Serve Only the Remainder of Kugler's Term
U.S. President Donald Trump announced on August 6 (local time) that he plans to nominate a successor to Federal Reserve Board Governor Adriana Kugler within the next two to three days.
According to Bloomberg News, President Trump met with reporters in the Oval Office that day and said, "We have started the interview process. There are some excellent candidates. It has probably been narrowed down to three." He added, "We will probably go with an interim appointment, and then make a formal nomination later. The interim governor will likely be nominated within two or three days." At the time, it had not yet been decided whether the successor's term would start anew upon appointment or simply complete the remainder of Kugler's term, but Trump indicated a preference for the latter.
Kugler, who is officially stepping down from the Board on August 8, submitted her resignation on August 1. Neither Kugler nor the Federal Reserve disclosed the reasons for her resignation. Known as a hawkish member within the Fed, Kugler was appointed as a governor in September 2023 during the Biden administration and had about six months left in her term, which was set to run until January 31, 2026.
Previously, President Trump mentioned Kevin Hassett, Chairman of the White House National Economic Council, and Kevin Warsh, former Fed governor, as two possible successors to Kugler. He did not disclose the identity of the third candidate.
The Federal Reserve, which determines U.S. benchmark interest rate policy, is composed of seven governors, including Chairman Jerome Powell. President Trump has repeatedly called for interest rate cuts and pressured Chairman Powell, who opposes such moves, to resign voluntarily.
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