Fed Official's Spouse to Sell Stocks Following Unauthorized Trades

Federal Reserve Board Governor Adriana Kugler is preparing to divest shares of Apple (NASDAQ:AAPL) and Cava Group following her husband's unauthorized stock purchases during the summer, which violate the central bank's strict ethical guidelines.

The transactions, which occurred without Kugler's knowledge, were disclosed in a government document dated October 24. Kugler stated in the document that her husband did not intend to violate any regulations. The Fed's ethics policy, which applies to spouses and minor children of senior officials, requires that all transactions be pre-approved by ethical authorities.

The stock purchases were conducted in amounts ranging from $1,001 to $15,000 throughout the summer. Upon noticing the transactions, Kugler promptly contacted the central bank's ethics office and followed their guidance to initiate the sale of the shares in accordance with the Federal Open Market Committee's ethical policies.

A Fed spokesperson confirmed that Kugler informed the ethics office and acted in compliance with the institution's policies. Current ethical rules were established in early 2022 following controversies involving personal investments of leaders at the regional Fed banks in Boston and Dallas, who resigned after creating the appearance of a conflict of interest. The subsequent investigation by the Fed's Office of Inspector General criticized the actions of these officials but cleared Fed Chairman Jerome Powell and former Vice Chairman Richard Clarida of any wrongdoing.

Atlanta Fed President Raphael Bostic was also scrutinized for his personal investments, violating rules and creating a conflict of interest appearance, but no evidence was found that he used confidential information in his trading. The examination of Bostic's activities is considered the latest in a series of reports on commercial transactions by Fed officials.