Sun Nov 16 11:40:00 UTC 2025: Summary:
Former Federal Reserve Board Governor Adriana Kugler resigned abruptly last year after a U.S. Office of Government Ethics report revealed she violated the Fed’s rules against trading individual stocks and executing financial transactions close to meetings where interest rates are set. The violations included purchases of stock in companies such as Apple, Southwest Airlines, Caterpillar, and Cava Group. Kugler’s husband, Ignacio Donoso, was implicated in some of the trades, with Kugler claiming they were made without her knowledge. Kugler’s resignation followed a denied waiver request from Chair Jerome Powell and an ethics investigation. The violations occurred after the Fed adopted stricter trading rules in 2022 following similar controversies involving other Fed officials.
News Article:
Former Fed Governor Kugler Resigned After Ethics Violations, Report Reveals
WASHINGTON, D.C. – Former Federal Reserve Board Governor Adriana Kugler resigned last year following violations of the central bank’s ethics rules, according to a report released by the U.S. Office of Government Ethics. The report, released Saturday, details Kugler’s trading of individual stocks and financial transactions close to Federal Open Market Committee (FOMC) meetings, where interest rates are set, actions that are barred by the Fed’s code of conduct.
Kugler’s violations involved purchases of shares in companies like Apple, Southwest Airlines, Caterpillar, and Cava Group. The report also indicated that her husband, Ignacio Donoso, executed some of the trades, with Kugler claiming they were done without her knowledge and without the intent to violate any rules.
“Consistent with her September 15, 2024, disclosure, certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge and she affirms that her spouse did not intend to violate any rules or policies,” the report stated.
The revelation of these violations prompted an ethics investigation and a denied waiver request from Fed Chair Jerome Powell, ultimately leading to Kugler’s abrupt departure from the Board of Governors in August.
These violations come after the Fed implemented stricter trading rules in early 2022, following similar controversies involving other Fed officials who engaged in questionable trading activity during the COVID-19 pandemic.
After her resignation, Kugler returned to Georgetown University. The Fed has not commented officially on the matter. The investigation has raised questions about the oversight and enforcement of ethics rules within the Federal Reserve system.
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