Former Federal Reserve board member Adriana Kugler stepped down from her position in August amid an investigation of alleged violations of the central bank’s stock trading rules, a new report from the U.S. Office of Government Ethics reveals.
The disclosures, released Saturday, show Kugler and her spouse engaged in multiple trades in individual stocks — including Apple, Southwest Airlines, and restaurant chain Cava — many of which occurred during blackout periods ahead of policy meetings when such transactions are prohibited.
In her disclosure forms, Kugler indicated the trades were executed by her husband without her knowledge, emphasizing “her spouse did not intend to violate any rules or policies.”
Under the Fed’s rules, board governors, senior staff, and their immediate family members are barred from trading individual company stocks. Also barred are transactions in cryptocurrencies, commodities, and foreign currencies. In addition, a blackout period around board meetings is strictly enforced.
Kugler’s disclosures shed new light on her unexpected August resignation. At the time, she cited a desire to return to teaching at Georgetown University, The New York Times reported Saturday. The timing, however, coincided with increased scrutiny from the Fed’s internal compliance office and ongoing pressure on the central bank from President Donald Trump to reduce interest rates.
Some of Kugler’s questionable trades were flagged for the Fed’s watchdog in early 2025, following meetings in late 2024 between Kugler and compliance officers regarding disclosures and trading rules, The New York Times reported. This was not the first instance of violations: a February 2024 disclosure form indicated four trades had also been executed by her husband, allegedly without Kugler’s knowledge.
Kugler financial disclosures, via U.S. Office of Government Ethics
The Federal Reserve strengthened its trading rules in 2022 following a series of controversies involving senior officials who actively traded stocks while the Fed was navigating major economic interventions during the pandemic. The scandals led to the resignations of two regional bank presidents, and scrutiny of former Vice Chair Richard H. Clarida, who left in January 2022. More recently, Raphael W. Bostic, the president of the Atlanta Fed, announced his retirement Wednesday after facing criticism for transactions that created the appearance of benefiting from confidential information.
The new filings provide details of Kugler’s trading activity, including repeated purchases and sales of stock within a period of weeks, as well as a substantial investment in Apple shares valued between $100,000 and $250,000. In one instance, Kugler bought shares of Cava one week before a policy meeting on March 19, then selling quickly on April 5.
“As noted in the Board of Governors of the Federal Reserve System’s (Board’s) comment included on Dr. Kugler’s 278 filing, earlier this year we received a referral from the Board’s Ethics Section regarding certain matters related to this filing,” an Office of Inspector General spokesperson told the Daily Caller News Foundation. “We have opened an investigation and, consistent with our practice, we are unable to comment further until our investigation is closed.”
Kugler did not immediately respond to a request for comment.
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