In a summer marked by political intrigue and shifting power at the United States’ central bank, the abrupt resignation of former Federal Reserve Governor Adriana Kugler has set off a cascade of questions—about her departure, her real estate records, and the growing influence of President Donald Trump over the Federal Reserve Board. The story, which began quietly with a resignation letter on August 1, 2025, has since grown into a high-stakes drama involving accusations, legal battles, and a scramble for control at one of the nation’s most powerful financial institutions.
Kugler, who was nominated by Democratic former President Joe Biden and confirmed to the Fed board in 2023, was expected to serve until January 2026. Yet, her resignation—effective August 8—came without warning or public explanation. In her letter addressed to President Trump, she wrote, “I am writing to notify you that I am resigning from my position as a governor of the Federal Reserve Board effective August 8, 2025. It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System.” According to CNBC, the letter offered no hint of the reasons behind her decision, leaving the financial community stunned. Notably, Kugler was absent from a key Fed meeting just two days before her resignation was made public, adding to the air of mystery.
The Federal Reserve, in its own press release on August 1, announced that Kugler would return to Georgetown University as a professor in the fall. However, a quick check of Georgetown’s faculty page revealed a puzzling inconsistency: Kugler was not listed as teaching any courses that term, and the university still showed her as being on leave from her duties. When CNBC reached out for clarification, Georgetown declined to comment on Kugler’s employment status.
President Trump, never one to shy away from public speculation, suggested that Kugler’s resignation stemmed from a disagreement with a fellow party member over interest rate policy. “She disagreed with ‘Too Late’ on the interest rate, so we’ll see what happens,” Trump told reporters, referencing his favored nickname for Fed Chairman Jerome Powell. Kugler herself has declined to provide an explanation for her abrupt departure, nor has she said whether she was pressured to step down.
The mystery deepened further when, on September 5, a media report surfaced detailing conflicting information in Kugler’s real estate records. According to Seeking Alpha and CNBC, Kugler’s personal financial disclosures listed a mortgage on a “personal residence” valued between $1 and $5 million. Yet, Maryland state tax records for that same Bethesda property indicated it was not her “principal residence.” During the same period, Kugler and her husband owned another home in Bethesda, which they rented out and sold in 2023 for $1.45 million. She also owns a third property in nearby Rockville, which generated rental income between $15,000 and $50,000 in 2023.
Kugler attributed the apparent inconsistency to a bureaucratic error. In a statement provided to CNBC, she said, “My primary residence has always been listed in my financial disclosure and this residence has never been rented. We filed a change of address in July of 2021 with Montgomery County after we moved to this residence, but it appears that Montgomery County failed to update it in its records. We are advised that Montgomery County is in the process correcting their records to reflect the 2021 change of address request.” Montgomery County, for its part, explained that it does not have the authority to alter a property owner’s status—that responsibility falls to the Maryland Department of Assessments & Taxation.
Importantly, there is no evidence that Kugler engaged in any wrongdoing or received improper financial benefit from her real estate holdings. As CNBC noted, the discrepancies in her records involve tax documents and ethics disclosures, not mortgage loan applications, and the terms “personal residence,” “primary residence,” and “principal residence” can have distinct legal meanings.
Yet, the issue of inconsistent real estate records has become a political flashpoint in Washington. Just days after Kugler’s resignation, Federal Housing Finance Agency director William Pulte launched a campaign to oust Kugler’s former Fed colleague, Lisa Cook, over allegations of mortgage fraud. Pulte accused Cook of listing two properties as her “primary residence” on mortgage paperwork, filed a criminal referral with the Justice Department, and, on August 20, President Trump fired Cook, citing the accusations as sufficient cause for removal.
Cook, however, has vigorously denied any wrongdoing. In response to her dismissal, she stated, “No cause exists under the law, and he has no authority to remove me from the board. I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.” She has since sued the Trump administration, alleging that her removal was actually motivated by a policy dispute over interest rates, not the purported fraud. The case is now before federal court.
Meanwhile, Trump has seized the opportunity presented by Kugler’s vacant seat to nominate White House advisor Stephen Miran. Miran’s Senate confirmation hearing took place on September 4, 2025, marking a pivotal moment in Trump’s quest to reshape the Federal Reserve. If confirmed, Miran would be the third of seven governors on the board chosen by Trump, edging him closer to a majority. According to CNBC, Trump has made no secret of his ambitions. On August 26, he told his Cabinet, “We’ll have a majority very shortly. So that’ll be great. Once we have a majority, housing is going to swing, and it’s going to be great. People are paying too high an interest rate. That’s the only problem with us. We have to get the rates down a little bit.”
Trump’s ongoing feud with Fed Chairman Jerome Powell has only intensified in recent months. He has repeatedly accused Powell—whom he calls “Too Late”—of making politically motivated interest rate decisions and holding back U.S. economic growth. “Jerome ‘Too Late’ Powell should have lowered rates long ago. As usual, he’s ‘Too Late!’” Trump wrote on social media, as reported by CNBC. The president’s press secretary echoed these sentiments, asserting that Trump’s “agenda continues to be held back by Jerome ‘Too Late’ Powell’s foolish refusal to admit that President Trump is right about everything.”
For now, the fate of the Federal Reserve’s leadership—and its crucial role in shaping the nation’s monetary policy—hangs in the balance. As the legal battles unfold and the Senate weighs Miran’s nomination, the political maneuvering shows no sign of slowing. The saga of Kugler’s resignation, the scrutiny of real estate records, and the struggle for control at the Fed have become emblematic of the broader tensions roiling Washington in 2025.
As power shifts and legal challenges mount, the central bank’s future direction remains uncertain, with every move watched closely by markets, policymakers, and the American public alike.