Key Fed official was under investigation over stock trades

"The disclosures show purchase and sales of individual stocks in 2024, including shares of Cava and Southwest Airlines, during so-called blackout periods - a stretch during which top Fed officials are banned from trading ahead of a Fed interest rate decision. The Fed also prohibits the buying-and-selling of individual stocks by officials or their close family members, as well as short-term trades (all investments must be held for a year)."

"A Fed official said that Kugler requested permission from Fed chair Jerome Powell to deal with prohibited holdings ahead of the Fed policy meeting last July. That clearance was denied. Kugler was absent and did not vote at the two-day policy meeting that ended on July 30. Two days later, she announced her resignation. The filings show the Fed declined to certify that Kugler's disclosures were in step with the trading rules."

Adriana Kugler, appointed to the Federal Reserve in 2023, made purchases and sales of individual stocks in 2024 that occurred during blackout periods before a Fed interest rate decision. Reported trades included shares of Cava and Southwest Airlines. Federal Reserve rules bar officials and close family from buying or selling individual stocks and require holding investments for at least a year. An endnote states some trading was conducted by Kugler's husband without her knowledge. Kugler requested permission from Chair Jerome Powell to address prohibited holdings before the July policy meeting and was denied. She did not vote at that meeting and resigned two days later; the matter was referred to an independent watchdog.

Read at Axios