Fresh ethics filings reveal that the trading violations that ousted Adriana Kugler from the Fed were far more widespread and closer to key policy dates than previously known.
Wall Street Journal (gated) with a very dirty story. Summary:
Former Federal Reserve Governor Adriana Kugler is facing intense scrutiny after recently released ethics filings revealed dozens of stock trades that violated the Fed’s strict individual-trading rules. Disclosures published Saturday by the government ethics office show that internal ethics officials refused to certify her 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. His exit came as his financial-disclosure paperwork was about to be completed.
The new filing points to at least a dozen prohibited trades made in 2024 – some just days before key FOMC meetings – including names like Kava Group, Southwest Airlines, Apple and Caterpillar. Many reflected a pattern of earlier violations she disclosed last year, which she said were accidentally committed by her husband.
The 2024 trades again violated two key Fed restrictions:
• No individual-stock transactions
• Complete blackout period before FOMC meetings.
Examples include Kava stock purchased on March 13, a week before the March FOMC meeting; Sold on April 5; Repurchased on April 23; And sold again on May 15. Another marked transaction: Southwest Airlines stock sold the day before the April-May FOMC meeting.
Their latest filing reiterated that “some of the trading activity was conducted by Dr. Kugler’s spouse” and without the intent to violate any regulations. Kugler had no comment.
The episode is particularly sensitive as Fed Chairman Jerome Powell plans to take action in 2022 on individual trading after controversies in 2021 that forced two regional Fed chairmen to resign. Ahead of the July 2024 meeting, Kugler asked for an exemption to attend despite the violations and was denied.
The disclosures also reveal he accepted more than $41,000 in pro bono legal services, adding another layer of scrutiny as the watchdog review progresses.
,
While the case does not alter the Fed’s near-term policy path, it risks reigniting the debate over the central bank’s credibility and could intensify congressional scrutiny of Fed governance and ethics standards.
Obviously a big fan of Coca-Cola
