
Adriana D. Kugler, who abruptly stepped down from her role as a governor at the Federal Reserve in August, repeatedly violated the central bank’s trading rules, according to a report from the U.S. Office of Government Ethics released on Saturday.
The new disclosures showed multiple purchases and sales of shares in individual stocks including Apple, Southwest Airlines and Cava, a restaurant group — many of which took place during the so-called blackout period ahead of policy meetings in which officials are not allowed to make such trades.
Ms. Kugler specified in the disclosure forms that the transactions were carried out by her husband without her knowledge and that “her spouse did not intend to violate any rules or policies.”
The Fed tightened trading rules in 2022 after several policymakers were found to have been actively participating in financial markets while the central bank was taking aggressive steps to support the economy at the onset of the pandemic. Three officials resigned in 2021 and 2022 as a result.
The rules, which apply to other senior members of the Fed as well as policymakers’ spouses and children, bar trades in individual companies and limit purchases to mutual funds and other diversified investments. They also banned trading in cryptocurrencies, foreign exchange and commodities and prohibited any transactions during the roughly two-week period before policymakers gather to vote on interest rates.
Ms. Kugler’s disclosures clear up some of the questions around her unexpected exit from the Fed months before her term was set to expire in January. At the time, she said she was leaving to return to Georgetown University to teach.
Some of the improper trades, which ranged from as little as $1,000 to as much as $250,000, were flagged to the Fed’s internal watchdog in early 2025. That came after meetings that Ms. Kugler had with compliance officers at the central bank in the fall of 2024 about the institution’s trading rules and the process to disclose transactions, according to a Fed official.
This is not the first time Ms. Kugler violated the Fed’s trading rules. She said in a financial disclosure form in February 2024 that four trades in individual stocks “were carried out by my spouse, without my knowledge, and I affirm that my spouse did not intend to violate any rules.”
The disclosures for 2024 were due in May, a deadline met by all of the policymakers except Ms. Kugler, who had requested an extension.
Days before the July 29-30 policy meeting, Ms. Kugler asked Jerome H. Powell, the Fed chair, to grant her a waiver so that she could trade during the blackout period in order to get rid of impermissible holdings, the official said. That request was denied.
Despite participating in several of the Fed’s briefings ahead of the July gathering, Ms. Kugler did not attend the meeting. Her absence was announced by the Fed the morning the meeting was set to begin, citing a “personal matter.” On Aug. 1, she announced her resignation. Ms. Kugler had served as a governor since September 2023 after being nominated by former President Joseph R. Biden Jr.
Ms. Kugler did not immediately respond to a request for comment.
Her exit came at a tumultuous time for the Fed, which was under intense scrutiny by the Trump administration over renovations underway at the central bank’s headquarters in Washington. President Trump, who was looking for ways to pressure the Fed to lower interest rates, had just visited the central bank for a tour of the construction site and had gotten into a public spat with Mr. Powell over the costs of the project.
Ms. Kugler’s departure gave Mr. Trump an opening to appoint one of his top economic advisers to the Fed, Stephen I. Miran, who has in his first two meetings has called for aggressive cuts to borrowing costs.
The president tried to force another opening just weeks later by attempting to oust Lisa D. Cook, a governor, over allegations that she committed mortgage fraud before joining the Fed. The Supreme Court recently ruled that Ms. Cook could stay on in her role at the Fed as the case is being litigated. The judges will hear arguments in January.