Last week saw the Federal Reserve vote to hold steady on interest rates despite President Donald Trump's urging that they be lowered.

However, an unexpected vacancy at the institution will provide Trump with an opportunity to reshape its approach. 

Biden appointee's term was scheduled to end in January

According to CNBC, Federal Reserve Governor Adriana Kugler announced her departure via a letter to the president announcing this past Friday.

"It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System," CNBC quoted Kugler as writing.

"I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market," she added.

CNBC noted that Kugler, whose term was not set to expire until January, was appointed to her position in September of 2023 by former President Joe Biden.

For his part, Federal Reserve Chair Jerome Powell praised Kugler in a statement, remarking that she had "brought impressive experience and academic insights to her work on the Board."

Two of Trump's Fed appointees break with Powell, call for rate cute

CNBC pointed out how the president has indicated that he will only appoint someone who is committed to lowering interest rates.

That course of action was unsuccessfully argued for by Federal Reserve Governor Christopher Waller and Federal Reserve Vice Chair Michelle Bowman, both of whom were appointed by Trump.

"What you do is, you lower them, and let's see if there’s inflation," The New York Times quoted Trump as saying to reporters last Wednesday regarding rates. "Right now there's no inflation."

Waller echoed that reasoning in a statement, remarking, "With underlying inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate."

Trump calls on Fed Board members to "assume control" from Powell, cut rates

Meanwhile, the Associated Press reported that the latest manifestation of the president's continuing dispute with Powell came in the form of a post on his Truth Social platform.

Trump wrote on Friday that Federal Reserve Board governors "should assume control" if Powell does not "do what everyone knows has to be done" and "substantially" lower interest rates.

The president also referenced Kugler's decision to step down, asserting, "She knew he was doing the wrong thing on Interest Rates. He should resign, also!"