Former Federal Reserve Governor Adriana Kugler resigned after Chair Jerome Powell refused to grant her a waiver for financial holdings that violated ethics rules. She faced a probe by the Fed’s internal watchdog. Kugler’s disclosures showed financial activity that breached the Fed’s ethics rules, leading to her resignation.

Kugler announced her resignation on August 1, effective August 8, after missing a policy meeting. She requested a waiver to address impermissible financial holdings, which Powell denied. Kugler’s financial disclosure, released after her departure, covered calendar years 2024 and 2025. She acknowledged previous violations related to her spouse’s stock purchases.

Kugler’s resignation allowed President Trump to fill a slot on the Fed’s board with Stephen Miran. Powell implemented stricter restrictions on investing and trading for Fed policymakers and senior staff in 2022. The rules were in response to unusual trading activity by senior officials in 2020, which led to early retirements and criticism from the Fed’s watchdog.

Boston Fed President Rosengren and Dallas Fed chief Kaplan retired early due to the trading revelations. The Fed’s internal watchdog cleared them of legal wrongdoing but criticized them for undermining public confidence. The new rules aim to boost public confidence in the integrity of policymakers by increasing financial disclosure requirements.

Read more at Yahoo Finance: Ex-Fed Governor Kugler Faced Ethics Probe Before Resignation