US President Donald Trump speaks to the press before boarding Marine One on the South Lawn of the White House in Washington, DC, on August 1, 2025. (Photo by Jim Watson / AFP)
Washington: US President Donald Trump said on Friday that he was "very happy" about an upcoming vacancy on the Federal Reserve's board, shortly after the central bank announced an early resignation among its leadership.
Trump's comments came after Fed governor Adriana Kugler submitted her resignation letter. Her term as a board member was due to end in January 2026, and her early departure next week allows Trump to appoint someone new to the Fed sooner than anticipated.
Kugler, who was nominated by former president Joe Biden in 2023, did not give a reason for stepping down from the Fed's board.
Her term was due to end in January 2026, but her departure -- effective August 8 -- gives Trump the chance to appoint someone new to the Fed sooner than anticipated, shaping its leadership.
The personnel shift comes as the Fed faces intensifying pressure under Trump, who has repeatedly criticized the central bank's chief Jerome Powell for not lowering interest rates sooner.
Trump has also suggested that what he says is an overly costly renovation of the Fed's headquarters could be a reason to oust Powell, before backing off the threat.
Powell's term as Fed chair ends in May 2026.
Kugler did not attend the Fed's two-day policy meeting this week due to a personal matter, and did not vote on its decision.
In a mid-July speech, she made the case for holding rates at the current level for some time, citing inflationary pressures and relatively low unemployment levels.
"It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System," Kugler wrote in her resignation letter to Trump.
