Former Fed Governor Kugler’s exit came amid forbidden trading activity | MarketScreener
Former Federal Reserve Governor Adriana Kugler broke the bank’s rules on stock trading. The U.S. Government Ethics Office released its report on Saturday.
Kugler left the Fed in August. She did not give a public reason. Her exit let President Donald Trump name Stephen Miran as her replacement.
The report links her violations to stock purchases in Apple, Southwest Airlines, Caterpillar, and Cava Group. These trades crossed two clear lines. She held individual stocks instead of broad funds. She or her spouse traded near Federal Open Market Committee meetings. Those meetings move interest rates and can shift markets.
Kugler joined the Fed in September 2023 after President Joe Biden nominated her. Trouble with her holdings began in September 2024. She worked with ethics officials to fix issues, but problems continued.
In one filing dated Sept. 11, the Ethics Office declined to certify her disclosure. The filing listed trades by her or her husband. An official noted that the matter had been sent to the Fed’s Office of Inspector General.
The filing also said that some trades were made by her husband, Ignacio Donoso, who works as an immigration lawyer. Kugler said she did not know about those trades. She added that her husband did not intend to break any rule. She then moved to divest the stocks as ethics officials directed.
The Fed said she requested a waiver before the July FOMC meeting so she could fix her portfolio. Chair Jerome Powell denied the request. She then missed the meeting. Days later she said she would resign on Aug. 8.
In an earlier October 2024 disclosure, she again said her husband made four trades that broke Fed rules. These included three Apple purchases in July and one Cava purchase in September.
The new report also shows she received more than $41,000 in free legal services from Arnold & Porter. The firm offered the work at no cost.
After leaving the Fed, Kugler returned to Georgetown University. She teaches public policy and economics.
The Fed tightened its trading rules in 2022. The move came after concerns about trades by Eric Rosengren and Robert Kaplan during the early weeks of the Covid-19 crisis. They faced questions but no legal charges. Both stepped down. Other Fed leaders, including Powell, faced public criticism for past trades.
Kugler’s departure let Trump install Stephen Miran for the rest of her term. Miran took unpaid leave from his role at the White House Council of Economic Advisors.
In 2024, the Fed’s inspector general said Raphael Bostic of Atlanta also broke trading rules. He plans to retire in February.
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