In the FED declaration, Kugler called no reason for her premature resignation. It was appointed by former President Joe Biden in 2023, and her term was to end in January. As a professor, she wants to return to the Georgetown University in Washington.
The FED had decided on Wednesday to leave the interest rate between 4.25 and 4.5 percent for the fifth time in a row. Trump, on the other hand, had requested a cut by three percentage points and justified this with cheaper real estate loans. He again questioned the independence of the central bank.
Kugler had voted with the majority to maintain the key interest rate, but two board members appointed by Trump spoke out for a reduction. The President then certified the FED “strong differences of opinion”, which would “only become stronger”.
Fed boss Jerome Powell warned the president at the session against “influencing” elections with the promise of low interest rates and cheap loans. Trump has been putting over Powell for months. He called him a “idiot”, “weak head” and “loose”. Powell wants to complete his term on office until May, according to previous information.
