Biden-Appointed Fed Governor Investigated For Stock Trade Violations Before Resigning, Gov Ethics Office Finds

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.