Former Federal Reserve Governor Kugar's resignation is fraught with doubts, property records raise more questions, and the power struggle within the Federal Reserve intensifies

Former Federal Reserve Governor Adriana Kugler suddenly resigned on August 1, and her absence from a key meeting two days prior without any explanation has shocked and confused the financial community, while the underlying power struggle remains unclear.

Kugler was nominated by Democratic former President Biden to fill an unexpected vacancy on the Federal Reserve Board and was confirmed by the Senate in 2023. Her term was originally supposed to last until January 2026.

In her resignation letter to Trump dated August 1, Kugler did not explain why she was resigning with several months left in her term.

She wrote:

“I am writing to inform you that I will resign from my position as a member of the Federal Reserve Board, effective August 8, 2025.”

“It has been an honor of a lifetime to serve as a member of the Federal Reserve System.”

The Federal Reserve also issued a statement on August 1 stating that Kugler “will return to teach at Georgetown University this fall.” However, the faculty page on Georgetown University's official website does not show her teaching any courses this fall. Instead, the website still lists Kugler as a ‘Federal Reserve Board member’ and notes that she is ‘on leave from Georgetown University.’

Trump hinted that Kugler's resignation was due to her “disagreement with someone in the party.”

“She and ‘Mr. Too Late’ have a disagreement on interest rates, and we’ll see,” Trump said to the media on August 1, referring to Federal Reserve Chairman Powell with his usual nickname “Mr. Too Late.”

Media reports indicate that the mystery surrounding Kugler's resignation and whether she was pressured to resign has become increasingly urgent in the weeks following her departure. This week, Kugler declined media requests to explain the reasons for her sudden resignation and also refused to disclose whether anyone had pressured her to leave the Federal Reserve.

Attack on Cook

On August 20, Federal Housing Finance Agency Director William Pulte announced that he had initiated an action to try to force Kugler's former colleague, Federal Reserve Governor Lisa Cook, to resign.

Pulte specifically accused Cook of declaring two properties as “primary residences” on mortgage documents, alleging “mortgage fraud.” He also suggested that if both properties were considered “primary residences,” Cook might enjoy lower interest rates.

On August 15, Pulte submitted a criminal referral to the Department of Justice, accusing Cook of mortgage fraud. Five days later, Trump announced he would remove Cook due to the aforementioned allegations and posted a letter to her on social media, stating that these allegations were sufficient grounds for “removing you from your position.”

Cook responded to Trump's letter hours later, stating that “there is no legal reason, and he has no authority” to remove her.

“I will not resign. I will continue to fulfill my duties and serve the U.S. economy as I have since 2022.”

On August 28, Cook sued the Trump administration, claiming the president's so-called “just cause” was merely a cover for his true motive—because she disagreed with him on interest rate policy—while denying any wrongdoing. The case is currently being heard in federal court

Kugler's Property Records

The media reports that Cook is not the only Federal Reserve official whose property records have raised external doubts.

According to a review of Kugler's personal financial disclosure forms and Maryland tax records, there are two seemingly contradictory statements regarding her "primary residence." Kugler stated to the media on Thursday that this inconsistency is an error made by the county tax authority.

Media reports indicate that in the government ethics disclosure forms she submitted for 2021, 2022, and 2023, she listed a "personal residence" mortgage loan amounting between $1 million and $5 million. However, the property is located in Bethesda, Maryland, and according to current state tax records, the section regarding whether the property is a "primary residence" states: "Primary residence: No."

During the same period, public records show that Kugler and her husband also owned another single-family home in Bethesda, which they rented out and ultimately sold for $1.45 million in 2023. These records had not been disclosed by the media previously.

There are currently no indications that Kugler has engaged in any misconduct, nor is there evidence that she has gained any improper economic benefit regarding her residence or tax status.

Additionally, unlike Cook, Kugler's property records do not include a loan application, only tax records and federal disclosure documents. The media notes that it is not uncommon to declare a "personal residence" rather than a "primary residence" on government ethics forms, as vacation homes can also be considered "personal residences."

Moreover, while the terms "principal residence," "personal residence," and "primary residence" used in official documents are similar in wording, their legal definitions can be vastly different. Nevertheless, based solely on these records, it remains unclear what Kugler's actual residence was during her tenure as a Biden administration official.

Kugler also owns a third property in nearby Rockville, Maryland, and reported rental income for that property in 2023 ranging from $15,000 to $50,000.

A person authorized to speak on her behalf provided a statement to the media, stating that Kugler said:

"My primary residence has always been accurately listed on my financial disclosure forms and has never been rented out."

"After we moved in July 2021, we submitted an address change request to Montgomery County, but it seems the county did not complete the update in its records. To our knowledge, Montgomery County is currently correcting its records to reflect our address change request from 2021."

A spokesperson for Montgomery County stated to the media on Friday:

"The county government does not have the authority to change the residence status of property owners; this matter is handled by the Maryland Department of Assessments & Taxation."

The media reports that inconsistent property records have become a "weapon" for the Trump administration to attack political opponents, frequently using such information to accuse others of "fraud."

Trump Uses Personnel Appointments as a Weapon

The media states that for Trump, the seats of Kugler and Cook on the Federal Reserve Board are of great significance.

Kugler's resignation gives Trump the opportunity to appoint someone to fill the remainder of his term, and he has chosen White House advisor Stephen Miran, whose confirmation hearing in the Senate was held this Thursday in Washington.

Analysis suggests that if Miran successfully takes office, it will be a key victory for Trump in his long-standing struggle for influence against Federal Reserve Chairman Powell, and the Fed's control over interest rates will further be swayed by Trump.

Trump has long accused the Federal Reserve of making interest rate hikes detrimental to him out of political bias. He and members of his administration have repeatedly criticized Powell for deliberately hindering U.S. economic growth.

Since taking office in January of this year, Trump has exerted immense pressure on Powell and other Fed governors, demanding they lower interest rates—yet to no avail. On Friday, Trump once again pressured Powell on social media:

“Jerome ‘Too Late’ Powell should have lowered rates long ago. As usual, he’s ‘too late’!”

The White House press secretary subsequently stated that Trump’s “policy agenda continues to be foolishly obstructed by Jerome ‘Too Late’ Powell, who refuses to acknowledge that President Trump is right on every issue.”

Analysis indicates that if Miran smoothly enters the board, Trump will have successfully appointed three of the governors, bringing him one step closer to his goal of “dominating the central bank.”

The day after attempting to dismiss Cook, Trump stated at a Cabinet meeting at the White House that once Cook leaves and a new person takes office, four of the seven governors of the Federal Reserve will be appointed by him.

“We will soon have a majority, which is fantastic.”

“Once we have a majority, the housing issues facing American families will see a turnaround, and the outlook will be very good.”

“The only problem people are facing right now is that interest rates are too high. We need to lower rates a bit.”