Former Federal Reserve Governor Adriana Kugler's Resignation Amid Ethics Probe
Former Federal Reserve Governor Adriana Kugler resigned abruptly after Chair Jerome Powell denied her a waiver to address financial holdings that did not comply with the central bank's ethics rules. This decision came after a probe by the Fed's internal watchdog regarding Kugler's recent financial disclosures. The Fed's ethics officials did not certify her latest disclosures, which revealed financial activity that violated internal ethics rules. Kugler announced her resignation on August 1, effective August 8, without providing a reason and after missing a policy meeting in July.
Before her resignation, Kugler requested a waiver to conduct financial transactions to address impermissible financial holdings, which Powell denied. The financial disclosure released after her departure covered calendar years 2024 and 2025. In her periodic financial disclosures in 2024, Kugler acknowledged that her spouse had made purchases of shares in Apple Inc. and Cava Group Inc., violating the central bank's rules on investing and trading for senior Fed officials and their families.
The Fed's ethics office referred the matter to the board's inspector general, as per standard practices. Top Fed officials are required to submit annual disclosures and report financial transactions. Kugler's departure and the issues with her financial disclosures highlight the importance of adhering to the central bank's ethics rules and the consequences of non-compliance.