The Federal Reserve said Friday that Governor Adriana D. Kugler will resign from the Board of Governors effective Aug. 8, more than five months before her term was scheduled to expire on Jan. 31, 2026. Kugler, who joined the board in September 2023, submitted her resignation letter to President Donald Trump and plans to return to Georgetown University as a professor. Kugler did not participate in this week’s Federal Open Market Committee meeting, according to the central bank. In a statement released by the Fed, she called her tenure “an honor of a lifetime” and cited the board’s efforts to curb inflation while supporting a resilient labor market. Her departure gives Trump an earlier-than-expected opportunity to nominate a voting member of the FOMC, potentially shifting the balance on a board that has resisted the White House’s calls for lower interest rates. Trump told reporters he is “happy” to have the vacancy and said Kugler had disagreed with Chair Jerome Powell. Bond markets moved on the news, with the yield on the 10-year Treasury falling 14.6 basis points to 4.214% shortly after the announcement.