Fed governor’s resignation opens a key vacancy for Trump to fill

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Kugler, a Biden appointee confirmed in 2023, filled the unexpired term of Lael Brainard. Her role included a permanent vote on the Federal Open Market Committee, which sets interest rates. Her departure creates a pivotal opportunity for Trump, who has pushed aggressively for lower borrowing costs.

Trump: ‘A woman left, as you know’

Speaking to reporters Sunday, Trump said, “I have a couple of people in mind. I’ll be announcing somebody for the filling of the person that left. A woman left, as you know, I guess a Biden or Obama appointment.”

The president also speculated, without evidence, that Kugler had resigned due to disagreements with Fed chair Jerome Powell over interest rates, CNBC News reported. “Very happy” about the new vacancy, Trump added that any nominee he selects will support rate cuts, which he has demanded repeatedly from the Fed.

Successor could be candidate for Fed chair

Trump is reportedly considering former Fed governor Kevin Warsh and current Council of Economic Advisors chair Kevin Hassett as Kugler’s potential replacement—both known for favoring lower interest rates, Yahoo Finance reported. Treasury secretary Scott Bessent, who is overseeing the search, has floated the idea of nominating someone now who could eventually replace Powell when his chairmanship ends in May 2026.

Warsh, who served on the Fed board from 2006 to 2011, has criticized the central bank recently, calling for “regime change” and a “strategic reset.” Hassett has also supported immediate rate cuts, aligning with the administration’s economic agenda.