Federal Reserve Board of Governors member Adriana D. Kugler announced his resignation, which dropped a particularly sensitive moment for the US central bank while President Donald Trump continued to challenge Fed’s long -standing independence tradition.
In a statement Released Friday, Fed said Kugler’s resignation would be effective on August 8. While he did not give a certain reason for his departure, the Central Bank noted that he plans to return to his academic post at Georgetown University. His term is set to end in January.
“It is an honor of a life to serve the board of governors of the Federal Reserve System,” Kugler said. “I was especially honored to have served at a critical time in achieving our dual commands to drop prices and maintain a strong and resilient labor market.”
Kugler’s departure is particularly significant because of his role as a member of the federal open market committee (FOMC), the 12-member panel that sets US interest rates.
A few days before his resignation was revealed, the FOMC wrapped up the July policy meeting In a decision to leave interest rates unchanged. In doing so, the Central Bank avoids sending a clear signal about when the rate cuts will continue.
When Kugler left, Trump had the opportunity to appoint a replacement. The seven members of the Federal Reserve Board of Governors were appointed by the President and confirmed by the Senate.
Related: Bitcoin refused $ 116k despite US jobs winning while Fed Rate Cut Bets passed 75%
Freedom challenges freedom during Trump
Kugler’s resignation came for a moment of higher tension for the US central bank, as questions went around Jerome Powell’s future seat and Trump intensified his attack on institution’s freedom.
In recent months, Trump and his allies have changed Efforts to push Congress to remove Powell, accusing him of false financial policy and sadness of the federal government with billions -billions of additional borrowing costs.
“We have someone who just refused to lower the Fed rate,” Trump said of Powell in June, according to News of ABC. “Maybe I should go to Fed. Am I allowed to appoint?
On Thursday, Trump again took the reality of society to criticize Powell, at this time for the Fed’s decision to hold rates stable at the latest policy meeting.
Repeated public interventions of Trump have marked a break from a decade length of central bank freedom standards, where the executive branch prevents interfering with financial policy decisions. He calls for historic major rates to reduce federal interest payments and stimulate economic growth.
Fed policy decisions also continue to flush through financial markets. Following a warmer-than-anticipated inflation report earlier this week and the Fed’s decision to hold rates stable, Bitcoin (Btc) Saw an upside down, reflects investor doubts Over the timing and size of potential rates in rate.
However, as Cointelegraph reported.
Related: Crypto Biz: Digital Gold Rush intensifies as Tether Gold Surges, institutions that double to BTC
