Federal Reserve Governor Adriana Kugler Resigns Amid Political Pressure

Federal Reserve Governor Adriana Kugler will step down from the Board of Governors effective August 8, according to a Friday statement. Her departure follows a tumultuous period for the central bank, which faces mounting criticism from the TRUMP administration over its refusal to cut interest rates at the July 30 meeting.

Kugler, who served since September 2023, cited a return to academia at Georgetown University. "It has been an honor of a lifetime," she said, reflecting on her tenure during a critical phase of monetary policy tightening. Chair Jerome Powell praised her "academic insights" but offered no comment on whether political pressure influenced her decision.

The resignation leaves a vacancy that President Trump is expected to fill within weeks. Markets will scrutinize the nominee’s stance on rate policy, which has direct implications for risk assets including cryptocurrencies.