Former Fed Governor Violated Trading Rules, Ethics Report Reveals

WASHINGTON, D.C. — Dr. Adriana Kugler, a former member of the Federal Reserve Board of Governors, broke trading rules of the central bank, according to a report by the U.S. Office of Government Ethics released on Saturday.

The report outlines violations regarding Kugler’s stock purchases made during a “blackout period” in 2024, which precedes Federal Open Market Committee (FOMC) meetings where officials cannot trade securities. The Federal Reserve confirmed that Kugler’s ethics report contained detailed transactions that contravened its policies.

Before July’s FOMC meeting, which Kugler did not attend, she sought a waiver from the Fed’s trading restrictions to address what she described as “impermissible holdings.” Fed Chair Jerome Powell denied her request, prompting Kugler’s resignation on August 1, 2025.

A source at the Federal Reserve disclosed that Kugler had undergone training in October 2024 following another issue that led to her referral to the Office of the Inspector General, which has since opened an investigation.

Since the implementation of new trading rules in October 2021, officials have been prohibited from investing in individual stocks and bonds. Some companies that Kugler invested in include Apple, Caterpillar, and Palo Alto Networks.

Kugler’s public financial disclosure report, signed on September 11, 2025, states, “Certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge,” and affirms that her spouse did not intend to breach any regulations.

President Joe Biden appointed Kugler to the Fed in 2023. She previously served as chief economist under Secretary of Labor Hilda Solis during the Obama administration and is currently a professor at Georgetown University.

Kugler’s sudden resignation allowed President Trump to nominate Stephen Miran, a top adviser, to fill the vacancy. Senator Elizabeth Warren has called for stricter ethics regulations to enhance transparency and accountability in the Federal Reserve.

“Independence does not mean impunity, and Congress needs to pass bipartisan legislation to make the Fed more transparent,” Warren stated.

The developing story continues as Kugler has not responded to requests for comment.