Former Federal Reserve official Adriana Kugler violated trading rules: report

Core Insights - A former Federal Reserve Board governor, Adriana Kugler, violated trading rules, leading to her resignation in August 2023 [1][6][10] Group 1: Trading Violations - Kugler engaged in multiple stock transactions, including shares of Apple and Southwest Airlines, during a blackout period when such trades are prohibited [2][3] - The Federal Reserve's rules restrict trades in individual companies and limit purchases to diversified investments and mutual funds, also banning trading in cryptocurrencies and commodities [3][6] - Some trades, amounting up to $250,000, were flagged to a Federal Reserve internal watchdog earlier in the year [10] Group 2: Resignation and Background - Kugler's resignation was announced in early August, although she initially planned to leave in January 2024 to return to Georgetown University [6][13] - Prior to her resignation, Kugler requested a waiver to trade during the blackout period to dispose of impermissible holdings, but this request was denied [10][11] - Kugler had undergone ethics training, which revealed additional potential violations of trading policies [11] Group 3: Federal Reserve's Response - The Federal Reserve revised its trading rules in 2022 following previous violations by policymakers during the pandemic [6] - Federal Reserve Board Chair Jerome Powell acknowledged Kugler's contributions and experience during her tenure [7]