Core Points - Former Federal Reserve Governor Adriana Kugler's resignation was linked to violations of Fed ethics rules and an internal investigation [1][4] - Kugler's financial disclosures revealed undisclosed trading in individual stocks during prohibited periods, raising concerns about compliance with ethics regulations [3][9] - The resignation allowed President Trump to appoint an ally to the Fed, amidst calls for lower interest rates [5][6] Group 1: Resignation and Ethics Violations - Kugler's resignation on August 1, 2024, came after she missed a key policy meeting and sought a waiver for financial transactions [2][6] - The Office of Government Ethics is investigating Kugler's financial disclosures, which included trades made during blackout periods [4][12] - Kugler had previously acknowledged violations of trading rules related to her husband's stock trades [8] Group 2: Financial Disclosures and Trading Activity - Newly released documents showed Kugler engaged in prohibited trading activities in 2024, including transactions in stocks like Materialise NV and Apple Inc. [9][10] - Specific trades included the purchase of Cava shares just before a Fed meeting and the sale of Southwest shares on the eve of another meeting [10][11] - The Fed's Office of Inspector General confirmed an ongoing investigation into Kugler's financial activities [12][13] Group 3: Regulatory Response and Public Reaction - Following past trading scandals, the Fed implemented stricter trading rules for officials to enhance public confidence [13][15] - Senator Elizabeth Warren and Senate Banking Committee Chair Tim Scott called for increased transparency and accountability within the Fed [15][16] - The situation highlights ongoing concerns about the integrity and ethical standards of Fed officials [15][16]