The sudden resignation of former Federal Reserve Governor Adriana Kugler on August 1, just months before her term was set to expire in January 2026, left financial and political circles unsettled. Kugler, nominated in 2023 by former President Joe Biden, submitted her resignation in a brief letter to President Donald Trump, offering no explanation other than that it had been “an honor of a lifetime” to serve. The Federal Reserve said she planned to return to Georgetown University as a professor, though her faculty profile still listed her as on leave from the Fed and not scheduled to teach classes this fall.
Speculation about whether Kugler was pressured to resign quickly emerged. Trump hinted that her departure stemmed from disagreements within her party over interest rate policy, while Kugler declined to clarify the circumstances or confirm if outside pressure played a role.
The issue gained sharper attention as Federal Housing Finance Agency director William Pulte launched a public campaign against another Fed governor, Lisa Cook, accusing her of mortgage fraud for allegedly listing two properties as primary residences. Pulte filed a criminal referral, and soon after, Trump announced he was firing Cook, claiming cause existed to remove her. Cook refused to step down, arguing the president lacked authority to dismiss her, and has since filed a lawsuit alleging political retaliation.
Kugler, meanwhile, faced questions about her own real estate records. Maryland property tax documents appeared inconsistent with federal ethics disclosures, identifying one Bethesda home as not her principal residence, despite her filings describing it as a personal residence. She also owned another Bethesda property sold in 2023 and a rental property in Rockville. Kugler attributed the discrepancies to county record-keeping errors, insisting her primary residence was always properly reported and never rented. Officials in Montgomery County said any corrections to principal residence status are handled at the state level. Importantly, no evidence has suggested Kugler benefited financially or engaged in misconduct.
Her resignation gave Trump the chance to nominate Stephen Miran, a White House advisor, to fill her seat. Confirmation would further shift the balance of power at the Fed, where Trump has clashed repeatedly with Chairman Jerome Powell, whom he accuses of deliberately keeping interest rates too high. With Kugler’s seat filled by his pick, Trump would edge closer to having a majority on the seven-member board, strengthening his influence over monetary policy and interest rate decisions at a time when he is pressing aggressively for cuts.
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