Washington, DC — Federal Reserve Board of Governors Member Adriana D. Kugler announced her resignation effective August 8, a development occurring at a pivotal moment for the U.S. central bank amid President Donald Trump’s ongoing challenges to its traditional independence.

In a Friday statement, the Fed confirmed Kugler’s departure, noting she plans to return to her academic role at Georgetown University. Scheduled to conclude her term in January, her departure necessitates a replacement appointment.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System…”

In her statement, Kugler expressed gratitude, remarking, “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.”

Kugler’s departure is particularly significant due to her role as a voting member of the Federal Open Market Committee (FOMC), which determines U.S. monetary policy. The FOMC recently concluded a July meeting by maintaining its current interest rates.

Her exit creates a vacancy requiring presidential nomination and Senate confirmation. With the U.S. central bank currently facing heightened political scrutiny, Kugler’s departure arrives at a critical juncture.

Just days prior to her announcement, President Trump escalated rhetoric against Federal Reserve Chair Jerome Powell. Earlier this month, Trump criticized the central bank’s decision to maintain interest rates, according to reports citing his remarks via ABC News.

“We have a man who just refuses to lower the Fed rate,” Trump allegedly said of Powell, circumventing official rate cuts despite widespread economic slack.

The ongoing political scrutiny marks a notable departure from decades-long standards safeguarding central bank independence. President Trump has championed more aggressive interest rate reductions to manage federal debt servicing costs and stimulate growth.