A governor of the Federal Reserve Board will step down from her position Aug. 8, returning to the faculty of Georgetown University’s McCourt School of Public Policy, she announced in an Aug. 1 letter.

Adriana D. Kugler resigned five months early from her position as governor of the Federal Reserve Board, returning to her professorship at the McCourt School of Public Policy. (Georgetown University)

Adriana D. Kugler, a labor economist, was appointed to the seven-member board — which guides U.S. monetary policy — by former President Joseph R. Biden in 2023. Throughout her tenure at the Fed, Kugler has been on leave from her position as professor of public policy at McCourt, where she will return in Fall 2025.

In a letter to President Donald Trump announcing her resignation, Kugler did not give a reason for stepping down but said she was proud of her commitment to public service as a governor.

“It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler wrote. “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 term was not set to expire until January 2026.

Kugler, who has Colombian heritage, was the first Latine person to serve on the Fed board. She previously served as the U.S. executive director of the World Bank and the chief economist for the U.S. Department of Labor under the Obama administration. 

Kugler joined Georgetown as a professor in 2010, studying labor markets and policy worldwide with a focus on economic inequality. She was the university’s vice provost for faculty from 2013 to 2016, helping reform the promotions and tenure process and build stronger faculty support systems, especially for non-tenure faculty.

Kugler has not taught a class since 2020 and she is not scheduled to teach any in Fall 2025, according to her faculty page. In February, she gave the 2025 Whittington Lecture, McCourt’s signature annual talk, where she said economists should adjust models to better understand the true relationship between inflation and unemployment. 

Kugler’s resignation comes amid Trump’s attacks on the Fed as he pressures its board to reduce interest rates. Trump will be able to nominate a new governor to fill the vacancy. 

The Fed is designed to operate independently from the White House, but some experts have warned that Trump’s threats appear to be fracturing that wall of separation. An additional appointment will likely increase Trump’s influence over the board.

Kugler did not attend the Fed’s policy meeting this week, but said in a mid-July speech that the Fed should not cut interest rates “for some time” while Trump’s tariff policies take effect.

Trump celebrated Kugler’s resignation, telling reporters Aug. 1 that he was “very happy” to have an open spot on the board. He later said Fed Chairman Jerome H. Powell, who has borne the brunt of Trump’s attacks, should resign.

“She knew he was doing the wrong thing on Interest Rates,” Trump wrote on social media. “He should resign, also!”

Kugler praised Powell in her letter, saying he had an “unwavering commitment” to the Federal Reserve and the nation.

Powell said Kugler was a valued member of the board.

“I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors,” Powell said in a statement. “She brought impressive experience and academic insights to her work on the Board.”

Kugler said she is glad to have worked with the Federal Reserve, reaffirming the importance of the institution.

“The Federal Reserve does important work to help foster a healthy economy and it has been a privilege to work towards that goal on behalf of all Americans for nearly two years,” Kugler wrote. “I am proud to have tackled this role with integrity, a strong commitment to serving the public, and with a data-driven approach strongly based on my expertise in labor markets and inflation.”