Another Washington insider is caught in a financial scandal that smells worse than a Beltway lobbyist’s cologne. Adriana Kugler, a former Federal Reserve board member, resigned in August 2025 amid a brewing investigation into alleged violations of the Fed’s strict stock trading rules.
The Daily Caller reported that Kugler stepped down while under fire for trades of individual stocks like Apple and Southwest Airlines, made during prohibited blackout periods, as detailed in a recent U.S. Office of Government Ethics report.
Let’s rewind to early 2025, when some of Kugler’s questionable trades first caught the attention of the Fed’s internal watchdog. Meetings with compliance officers late in the prior year had already raised red flags about her financial disclosures. Yet, somehow, the trades kept happening—call it a classic case of rules for thee, but not for me.
According to the ethics report, Kugler’s spouse executed multiple trades, including a hefty investment in Apple shares worth between $100,000 and $250,000.
Federal Reserve rules are crystal clear: board governors and their immediate family are barred from trading individual stocks, cryptocurrencies, or commodities. Apparently, blackout periods around policy meetings—when trading is an absolute no-go—weren’t enough to deter these transactions.
Take one eyebrow-raising example: Kugler bought shares of Cava just a week before a key policy meeting, only to sell them shortly after. If that doesn’t scream “inside baseball,” then perhaps we’ve all been watching the wrong game. It’s hard not to question whether such timing was mere coincidence or something more calculated.
Kugler’s defense, as noted in her disclosure forms, is that “her spouse did not intend to violate any rules or policies.” Well, bless their hearts for good intentions, but ignorance of the law isn’t exactly a get-out-of-jail-free card when you’re at the Fed. This excuse feels thinner than a dime in a billionaire’s pocket.
By August 2025, Kugler was out the door, citing a return to teaching at Georgetown University as her reason, per a report in The New York Times.
But let’s not kid ourselves—the timing of her exit, coinciding with intensified scrutiny from the Fed’s compliance office, paints a different picture. Add in external pressures on the central bank to slash interest rates, and it’s clear the heat was on.
The Office of Inspector General has since opened a formal investigation, following a referral from the Fed’s Ethics Section earlier in 2025.
A spokesperson for the office confirmed to the Daily Caller News Foundation, “As noted in the Board of Governors of the Federal Reserve System’s comment included on Dr. Kugler’s 278 filing, earlier this year we received a referral from the Board’s Ethics Section regarding certain matters related to this filing.”
They added, “We have opened an investigation and, consistent with our practice, we are unable to comment further until our investigation is closed.” That’s government-speak for “don’t hold your breath for quick answers.” Still, it’s a relief to see some accountability in motion, even if it often feels like watching paint dry.
This isn’t the Fed’s first rodeo with trading controversies—back in 2022, they tightened their rules after scandals forced the resignations of two regional bank presidents. Even former Vice Chair Richard H. Clarida faced scrutiny before leaving that same year. It’s almost as if the central bank is a magnet for financial mischief.
More recently, Raphael W. Bostic, president of the Atlanta Fed, announced his retirement following criticism over transactions that seemed to profit from insider knowledge. When will the lesson sink in that public trust isn’t just a buzzword? These repeated missteps erode confidence faster than a bad interest rate hike.
Kugler’s case, with trades allegedly made without her knowledge by her husband, raises questions about accountability at the highest levels. If a Fed governor can’t ensure compliance within their own household, how can they be trusted with the nation’s monetary policy? It’s a fair concern for hardworking Americans who play by the rules.
Let’s be real: the Federal Reserve wields immense power over our economy, and with that comes a responsibility to be above reproach. When board members or their families skirt the rules—intentionally or not—it fuels the narrative that elites operate by a different playbook. That’s the last thing we need in an era where trust in institutions is already hanging by a thread.
While Kugler deserves the benefit of the doubt until the investigation concludes, the optics here are dreadful. Conservatives have long argued for stricter oversight of unelected bureaucrats, and this saga only bolsters the case. It’s time for the Fed to clean house, not just with policies, but with a culture that seems to wink at ethical lapses.