Headline: Fed Ethics Filings Intensify Scrutiny of Former Governor Adriana Kugler’s Trades
Newly released ethics disclosures indicate that stock trading linked to former Federal Reserve Governor Adriana Kugler was more extensive and closer to key policy dates than previously understood, escalating questions about adherence to the central bank’s tightened ethics rules.
According to the filings, internal ethics officers declined to certify Kugler’s compliance and referred the matter to the Fed’s Office of Inspector General. Kugler resigned on August 1 and did not attend the July 29–30 FOMC meeting, with the Fed citing a personal matter. The disclosure documents also note she sought a waiver to participate in the July meeting but was denied, and that she accepted more than $41,000 in pro bono legal services.
The new details point to at least a dozen transactions in 2024 that appeared to contravene the Fed’s personal-trading restrictions, including both an outright ban on individual-stock trading and blackout windows ahead of FOMC policy decisions. The trades—spanning companies such as Cava Group, Southwest Airlines, Apple, and Caterpillar—include purchases and sales days before and between meetings. Examples cited in the filings include Cava shares bought a week before the March meeting, subsequently sold and repurchased in April, then sold again in May, as well as Southwest shares sold the day before the April–May meeting.
These revelations come after Chair Jerome Powell’s 2022 ethics overhaul, introduced in the wake of trading controversies at regional Reserve Banks. While the case is unlikely to shift the Fed’s near-term monetary policy outlook, it may revive debate in Congress over governance and ethics safeguards at the central bank. Kugler’s filing states that certain activity was conducted by her spouse without intent to violate rules; she has not commented publicly.
Key Points – Newly released ethics filings show trades tied to Adriana Kugler were broader and closer to FOMC dates than previously known. – Fed ethics officers declined to certify compliance and referred the case to the Office of Inspector General. – At least a dozen 2024 trades appeared to breach the Fed’s ban on individual-stock trading and blackout periods. – Transactions involved Cava Group, Southwest Airlines, Apple, and Caterpillar, with some occurring days before policy meetings. – Kugler resigned on August 1, missed the July FOMC meeting, and was denied a waiver to attend. – The filings also disclose over $41,000 in pro bono legal services, adding to the scrutiny of the episode.
