The sudden resignation of Adriana Kugler, a director of the Federal Reserve, this summer has caught the attention of the market. On Saturday, the government disclosed documents revealing that Kugler had engaged in multiple violations during her tenure, leading to an internal investigation by the oversight department.
According to Federal Reserve officials, Kugler had requested a waiver at the end of July to address issues related to her spouse’s breaches of investment regulations, which included individual stock trades and transactions related to Federal Reserve policy meetings, but her request was denied.
Subsequently, she did not attend the Federal Open Market Committee (FOMC) meeting on July 30-31 and announced her resignation the following day (August 1). Her remaining term was taken over by Stephen Miran, an economic advisor to Trump, who actively pushed for interest rate cuts at the Federal Reserve.
Kugler had served as a Federal Reserve director since 2023, and trading issues first surfaced in October 2024. She disclosed that her spouse had acquired stocks in companies like Apple, Southwest Airlines, and Cava Group Inc. in the previous year and documented the selling of stocks in January 2025. These trades were prohibited under the investment regulations for Federal Reserve directors and their families.
Documents released by the Office of Government Ethics (OGE) on Saturday detailed Kugler’s trades before and after FOMC meetings, violating the regulations prohibiting officials and their families from investing during such periods.
Kugler’s trading behavior has been handed over to the Federal Reserve Inspector General for investigation, and her final financial disclosure has not been approved by the Federal Reserve Ethics Officer, a rare occurrence at the Federal Reserve.
The documents indicate that Kugler attributed these trading issues to her spouse and stated that “her spouse did not intentionally violate any rules or policies.”
A spokesperson for the Federal Reserve Inspector General’s office stated, “We have received the filing-related matters from the Federal Reserve Ethics Department and have initiated an investigation. We cannot provide further comments until the investigation is concluded as per standard practice.”
Following her initial violation, Kugler underwent additional ethics training.
Kugler’s trading scandal poses the latest challenge for the Federal Reserve. Over the years, the institution has been committed to maintaining the credibility of officials in setting policies.
At the end of 2021, two regional bank presidents resigned due to similar trading issues, prompting the Federal Reserve to swiftly introduce new regulations, strictly limiting investment targets and funding operations for officials and their families. Subsequently, the investment activities of current Chairman Jerome Powell and Atlanta Fed President Raphael Bostic have been scrutinized by oversight departments.