New disclosures from the U.S. Office of Government Ethics indicate that former Federal Reserve Governor Adriana Kugler violated the central bank’s trading rules before she abruptly stepped down this summer, according to a report published Saturday by The New York Times.

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The documents show multiple stock transactions made during blackout periods when trading is prohibited for Federal Reserve officials and their immediate family members.

The disclosures detail purchases and sales of stocks including Apple, Southwest Airlines, and restaurant chain Cava.

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According to the Times, many of the trades occurred during a roughly two-week blackout window ahead of Federal Reserve policy meetings, during which officials and their spouses are not allowed to trade individual securities.

The filings state that “certain trading activity was carried out by Dr. Kugler’s spouse, without Dr. Kugler’s knowledge, and she affirms that her spouse did not intend to violate any rules or policies.”

Under Federal Reserve ethics rules, however, spouses and dependent children are bound by the same restrictions that apply to policymakers, including a ban on individual stock trades and a requirement to limit investments to diversified funds.

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The Times noted that the rules also prohibit trading in cryptocurrencies, foreign exchange, and commodities, and bar all trading activity during blackout periods preceding interest-rate decisions.

The Federal Reserve updated these rules in 2022 after revelations that several policymakers had traded securities while the Fed was implementing emergency measures during the early months of the COVID-19 pandemic.

According to the report, some of the trades connected to Kugler reached as high as $250,000 and were flagged by an internal watchdog in early 2024.

Shortly before her resignation, Kugler reportedly requested a waiver from Federal Reserve Chair Jerome Powell in July that would have allowed her to sell impermissible holdings during a blackout period. The Times reported that Powell denied the request.

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FOX Business reported that a Federal Reserve official said Kugler filed initial paperwork with the Office of Government Ethics in October 2024 noting that her husband had made trades that violated bank policy and that she was working to correct them.

The official also said Kugler underwent training with ethics staff toward the end of last year, and during that process, additional potential violations were identified.

Kugler’s resignation was announced by the Federal Reserve in early August.

In a statement issued at the time, she said, “It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System. I am especially honored to have served during a critical time in achieving our dual mandate of bringing down prices and keeping a strong and resilient labor market.”

Chair Jerome Powell issued a separate statement, saying, “I appreciate Dr. Kugler’s service on the Board and wish her very well in her future endeavors. She brought impressive experience and academic insights to her work on the Board.”

The Federal Reserve noted that during her tenure, Kugler served on several committees, including the Committee on Financial Stability, the Committee on Federal Reserve Bank Affairs, the Committee on Board Affairs, and the Subcommittee on Smaller Regional and Community Banking.

According to the Times, Kugler had initially planned to leave the Federal Reserve in January and return to Georgetown University to teach.

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Her early departure followed months of internal review and continued scrutiny over the trading activity identified in the ethics disclosures.

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