Federal Reserve Governor Adriana Kugler has resigned from her post following an internal ethics review into irregularities in her financial disclosure filings, according to officials familiar with the matter. The departure marks an unexpected shake-up inside the U.S. central bank at a time when its leadership has sought to strengthen public confidence after recent controversies.
Kugler submitted her resignation to President Biden earlier in the week, and the announcement was made on Saturday without reference to the inquiry that prompted it. In her letter, she said it had been “an honor to serve,” offering no additional details about the circumstances surrounding her exit. The White House acknowledged receiving her resignation but declined to comment further.
The probe, launched by the Federal Reserve’s inspector general, centered on repeated amendments to Kugler’s financial disclosure forms. Investigators examined a series of late-reported stock trades from 2023, as well as the omission of a Bank of America account that did not appear in her 2024 filing until months later. Those trades, executed in October 2023, were initially recorded with incorrect dates, showing up as transactions from May 2024.
Kugler’s disclosures were revised at least five times, according to people briefed on the review. The errors drew attention because the Fed tightened its ethics rules in 2023, placing stricter limits on financial activity for senior officials in response to public concerns about conflicts of interest.
A spokesperson for the governor said the mistakes were “unintentional” and stressed that she worked closely with ethics officers to correct all discrepancies. The spokesperson also noted that the undisclosed bank account did not contain any investments restricted by Federal Reserve policy.
A Federal Reserve representative confirmed that the Board was cooperating with the inspector general but declined to discuss ongoing investigative matters.
Kugler joined the Federal Reserve Board in September 2023 and was widely viewed as a leading candidate for the role of vice chair. Her resignation came just weeks before her scheduled Senate confirmation hearing, where questions surrounding her disclosures were expected to surface.
Her departure opens a new vacancy at the central bank and adds another layer of uncertainty as policymakers navigate inflation pressures, shifting economic indicators, and heightened political scrutiny.
