Former Federal Reserve governor Adriana Kugler violated the central bank’s strict trading rules multiple times in 2024, financial disclosure documents reveal. The violations included individual stock transactions during blackout periods when Fed officials are prohibited from trading.
Kugler, who unexpectedly stepped down from her position in August 2025, made several trades that ran afoul of the Fed’s ethics guidelines, including a substantial Apple stock purchase in April 2024 valued between $100,000 and $250,000, according to documents obtained by Fox Business.
Trading During Forbidden Windows
The violations weren’t minor slip-ups. Kugler’s disclosures show she sold Palo Alto Networks stock worth between $50,000 and $100,000 and bought shares of Cava Group valued between $1,000 and $15,000 during March 2024 — both transactions occurring within a week of a Fed meeting, when trading is explicitly prohibited.
She also disclosed additional transactions during the blackout period before the Fed’s late April meeting, including another Cava Group purchase and the sale of Southwest Airlines stock worth between $15,000 and $50,000. Other companies involved in her individual stock transactions included Caterpillar and Fortinet.
Why does this matter? Federal Reserve officials wield enormous influence over financial markets through their control of interest rates and monetary policy. The central bank’s ethics rules exist specifically to prevent conflicts of interest or even the appearance of officials benefiting from non-public information.
Under rules adopted in 2022, Fed officials are barred from investing in individual stocks, bonds, or cryptocurrencies altogether. While they may invest in diversified vehicles like mutual funds, any transactions require 45 days’ advance notice and explicit approval. Most critically, officials must avoid any financial transactions during the “blackout period” — approximately 10 days before and one day after the Fed’s eight annual policy meetings, when sensitive discussions about monetary decisions take place.
Spouse’s Trading Activity
The report indicates that “certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge,” and that “her spouse did not intend to violate any rules or policies.” This explanation mirrors previous cases where Fed officials have attributed violations to third-party investment managers or family members.
Kugler’s case isn’t the first ethics controversy at the central bank. In 2022, Raphael Bostic, president of the Atlanta Fed, acknowledged that many of his financial investments had violated ethics rules, forcing him to revise financial statements dating back to 2017. These repeated incidents prompted the Fed to adopt its current, more stringent trading restrictions.
Who was Kugler before joining the Fed? A trailblazer in some respects. Appointed by President Joe Biden in September 2023, she made history as the first Hispanic governor on the Federal Reserve Board. Prior to her Fed service, she was a professor at Georgetown University and served as the U.S. representative to the World Bank. Following her resignation, she returned to Georgetown’s faculty this fall.
The timing of Kugler’s departure raised eyebrows among Fed watchers. She resigned on August 8, 2025, after less than two years in a position that typically carries a 14-year term. Her resignation letter didn’t specify reasons for her unexpected exit.
Her vacated seat didn’t remain empty for long. In September, the Senate confirmed Stephen Miran, a former economic adviser to President Donald Trump, to fill Kugler’s position on the Federal Reserve’s governing board.
The revelation of these ethics violations adds another chapter to the Fed’s ongoing struggle to maintain public trust in its governance practices — particularly as the institution makes consequential decisions affecting every corner of the American economy.
