Federal Reserve Governor Adriana Kugler will step down on 8 August, almost 18 months before her term was due to expire. The surprise departure gives President Donald Trump an immediate opening on the seven-member Board of Governors, a slot he can fill with Senate approval or, if Congress is in recess, with a temporary appointment. The vacancy could also accelerate the search for a successor to Chair Jerome Powell, whose four-year leadership term ends in May 2026. With no other board terms expiring until 2028, several analysts say Trump may now nominate a potential future chair to complete Kugler’s term, positioning that person for promotion next year. Trump intensified pressure on the central bank after the resignation was announced, writing that Powell should be “put out to pasture” and repeating that the Fed should cut its 4.25%–4.50% policy rate. In a subsequent television interview, he acknowledged that dismissing Powell before May 2026 would “disturb the market” and said the chair would “most likely” remain in place until his term ends.