Core Points - The article discusses the ethical violations of former Federal Reserve Board member Adriana Kugler, who reported multiple stock trades that contravened Federal Reserve policies, leading to an investigation by the Office of the Inspector General [1][2][4] - Kugler's spouse conducted these trades, which included stocks from Apple and Southwest Airlines, violating the Federal Reserve's prohibition on trading individual stocks by board members and their families [2][4] - This incident has raised concerns about the enforcement of ethical standards among Federal Reserve officials, especially following previous controversies regarding trading practices [1][6] Summary by Sections Violations and Investigations - Kugler's financial disclosure for the 2024 fiscal year revealed multiple stock trades that violated Federal Reserve policies, prompting an internal investigation [2][4] - The Federal Reserve's rules explicitly prohibit board members and their families from trading individual stocks to prevent conflicts of interest [2][4] Previous Incidents - This is not the first time Kugler has faced scrutiny; she previously reported four violations a year ago, claiming her husband acted without her knowledge [5][6] - Following the recent disclosures, it was revealed that Kugler sought a waiver from trading restrictions before a Federal Open Market Committee (FOMC) meeting, which was denied, leading to her absence from the meeting [5][6] Policy Context and Changes - Kugler's resignation on August 1, 2024, occurred shortly after her absence from the FOMC meeting, raising questions about the timing and implications of her departure [6][7] - The Federal Reserve has strengthened its ethical guidelines since 2022, prohibiting board members from trading a wide range of financial assets, including stocks and cryptocurrencies, to enhance transparency and prevent conflicts of interest [6][7] - The new policies apply not only to the officials themselves but also to their spouses and minor children, aiming to eliminate potential conflicts from the outset [7]