Former Fed Governor Adriana Kugler violated multiple central bank trading rules ahead of her abrupt resignation in August, filings from the Office of Government Ethics revealed. In July, Fed Chair Jerome Powell denied a request from Kugler to receive a waiver to clear violations related to individual stock trades and financial transactions executed during Federal Open Market Committee (FOMC) blackout periods.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Kugler’s issues began in 2024 when her spouse purchased individual stocks, including Apple (AAPL) and Cava (CAVA). Fed officials and their family members are prohibited from trading individual stocks.
Trades from Kugler’s Spouse Led to Ethics Violation
Kugler said that the individual stock purchases were made by her spouse without her knowledge and that her spouse did not intend to violate any ethics rules.
“Upon learning about the purchases, I immediately notified ethics officials, and at their direction, I initiated divestiture of these assets as soon as possible under FOMC ethics policies,” she said.
The Fed banned officials from trading individual stocks, bonds, and cryptocurrencies in 2022 after former Fed regional presidents Eric Rosengren and Robert Kaplan executed trades before the Fed implemented emergency measures to support the economy during the early stages of the Covid-19 pandemic.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.