Ethics Probe into Former Fed Governor Kugler's Stock Trades Preceded Abrupt Resignation

2 hours ago7 min read1 comments

An ethics investigation into former Federal Reserve Governor Adriana Kugler, initiated earlier this year over alleged violations of the central bank's stock trading rules, preceded her sudden August resignation. Financial disclosures revealed the probe centered on trades made during designated blackout periods ahead of key Fed policy meetings in 2024, including transactions involving individual stocks such as Cava and Southwest Airlines.These activities directly contravened the Fed's tightened ethics framework, established after a 2021 scandal, which aims to prevent any appearance of officials profiting from confidential information. Although a note suggested some trades were executed by her husband without her knowledge, the Federal Reserve notably declined to certify that her financial disclosures complied with its regulations.Her departure created a vacancy on the Board of Governors, which President Trump promptly filled by appointing White House economist Stephen Miran. This episode highlights the persistent challenge of managing personal financial interests within the institution responsible for U.S. monetary policy, occurring alongside a separate investigation into Atlanta Fed President Raphael Bostic's disclosures.The situation unfolds as the Fed faces intense political scrutiny, with the White House pressuring for lower interest rates and President Trump having already moved to replace Governor Lisa Cook and poised to name a new chair in May. The integrity of the Fed's governance is now under a dual microscope, testing the central bank's independence during a period of significant economic and political consequence.

#Federal Reserve

#ethics probe

#stock trades

#resignation

#Jerome Powell

#featured

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