A former governor of the Federal Reserve, Adriana Kugler, has attributed her recent trading violations to activities conducted by her husband, as outlined in an ethics report released by the U.S. Office of Government Ethics. The report, made public on November 15, 2025, detailed how Kugler engaged in stock transactions that contravened the central bank’s trading rules, particularly around meetings of the Federal Open Market Committee (FOMC).
The investigation revealed that Kugler made trades in stocks, including those of Cava, Apple, and Southwest Airlines, during a designated “blackout period.” This period prohibits officials from trading stocks approximately ten days before and one day after FOMC meetings, which are critical for setting interest rates. The report concluded that Kugler’s actions constituted violations of these regulations.
Kugler, aged 56, resigned from her position on the Federal Reserve Board on August 1, 2025, following the commencement of the investigation. Her resignation came shortly after she missed a July FOMC meeting, raising questions about her compliance with the rules. Notably, she disclosed in September 2024 that the infractions were committed without her knowledge by her spouse, Ignacio Donoso, a business immigration lawyer based in Maryland.
In the ethics report, it was stated, “Consistent with her September 15, 2024, disclosure, 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.” This statement underscores Kugler’s position that she was unaware of the trades, which included buying shares in Cava just a week before a policy meeting in March 2025, and selling them shortly thereafter.
Kugler was nominated to the Federal Reserve Board by President Biden in 2023 and confirmed by the Senate the same year. She was part of a regulatory system that includes the twelve Federal Reserve Banks and the Board of Governors, with governors serving staggered fourteen-year terms. Her term was intended to contribute to the formulation of monetary policy and maintain financial stability.
The report highlighted that Kugler sold stocks in Cava and Apple during the blackout period, which raised concerns regarding her adherence to the ethical guidelines established by the Federal Reserve. Following her resignation, she began a new role as a professor at the McCourt School of Public Policy and Economics at Georgetown University.
In response to her trading activities, the Federal Reserve has tightened regulations on stock trading for officials in recent years. In 2021, Chair Jerome Powell implemented stricter rules following controversies involving other officials who traded stocks during the pandemic’s economic response. These regulations have since expanded to prohibit trading in individual stocks, bonds, and cryptocurrencies.
Kugler expressed her gratitude for having served on the Board, stating, “It has been an honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” and praised the efforts to achieve the central bank’s dual mandate of reducing prices and maintaining a resilient labor market.
As the investigation and its implications continue to unfold, the Federal Reserve remains focused on upholding its standards and ensuring the integrity of its operations. The Office of Government Ethics has not released additional comments following the report, but the findings may prompt further scrutiny of trading practices within the institution.
The Daily Mail has reached out to Kugler and the Federal Reserve for comments regarding the ethics report and its findings.
