Sun Nov 16 11:40:00 UTC 2025: Summary:

Former Federal Reserve Governor Adriana Kugler, who resigned abruptly in August 2024, repeatedly violated the Fed’s trading rules, according to a U.S. Office of Government Ethics report. The violations involved purchases and sales of individual stocks like Apple, Southwest Airlines, and Cava, often during blackout periods before policy meetings. Kugler attributed the trades to her husband, claiming they were made without her knowledge and without intent to violate rules. This comes after the Fed tightened its trading rules in 2022 following similar scandals involving other officials. The disclosures clarify questions surrounding Kugler’s sudden departure, which she initially attributed to a desire to return to teaching. Her resignation allowed President Trump to nominate a more dovish economist to the Fed. Kugler’s trading activities were flagged to the Fed’s internal watchdog after discussions about compliance with trading rules. She had previously disclosed similar violations in 2024. Her request for a waiver to trade during a blackout period to divest impermissible holdings was denied. She was absent from the July policy meeting, citing a personal matter, before announcing her resignation on August 1.

News Article:

Ex-Fed Governor Kugler Violated Trading Rules, Ethics Report Finds

WASHINGTON – Adriana D. Kugler, who abruptly resigned from her position as a governor at the Federal Reserve in August 2024, repeatedly violated the central bank’s trading rules, according to a report released Saturday by the U.S. Office of Government Ethics.

The report reveals that Kugler, who stepped down months before her term was set to expire, engaged in multiple purchases and sales of individual stocks, including Apple, Southwest Airlines, and restaurant chain Cava. Many of these transactions occurred during blackout periods, a time before policy meetings when officials are prohibited from trading.

Kugler attributed the trades to her husband, immigration attorney Ignacio Donoso, claiming they were made without her knowledge and without intent to violate any rules.

The Federal Reserve tightened its trading rules in 2022 after several policymakers faced scrutiny for actively participating in financial markets while the central bank took steps to support the economy during the pandemic.

The new disclosures highlight that some of the improper trades were brought to the attention of the Fed’s internal watchdog after Kugler had met with compliance officers in the fall of 2024. Previously, Kugler disclosed similar violations in 2024 attributing to her husband.

The rules, which apply to senior Fed officials, their spouses, and children, prohibit trading in individual companies and restrict purchases to mutual funds and other diversified investments. They also ban trading in cryptocurrencies, foreign exchange, and commodities.

Kugler’s resignation, announced just before a policy meeting she ultimately did not attend, citing a personal matter, came as a surprise. She had previously stated she was leaving to return to Georgetown University to teach. Her departure provided President Trump with an opportunity to appoint Stephen I. Miran, one of his top economic advisers.

The Fed’s ethics officers declined to certify that Kugler’s financial disclosure forms complied with the Fed’s policies. Prior to her resignation, Kugler’s request for a waiver to trade during a blackout period to get rid of impermissible holdings was denied by Fed Chair Jerome Powell.

Kugler did not immediately respond to a request for comment.

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