(MENAFN- Live Mint) Former Federal Reserve Governor Adriana Kugler, who resigned suddenly in August this year, allegedly violated Fed ethics rules and was subject to an internal probe when she stepped down, according to documents released on Saturday.

During her final weeks at the Fed, Kugler tried to resolve an issue with her financial holdings, but Chair Jerome Powell refused her request for a necessary waiver ahead of the central bank's policy meeting on 29-30 July, Bloomberg reported, citing a Fed official.

On Saturday, the Office of Government Ethics released Kugler's latest financial disclosures, which revealed previously undisclosed trades in several individual stocks from 2024. Some of these trades took place during the Fed's blackout period, violating the agency's ethics rules, the report said.

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Fed ethics officials reported the issue to the agency's inspector general earlier this year, according to the form. They also chose not to certify the disclosures Kugler submitted about a month after her resignation. An IG spokesperson mentioned Saturday that an investigation is ongoing.

Kugler's resignation provided Trump with an earlier chance to fill a Fed board seat during his aggressive campaign, urging policymakers to cut interest rates sharply. The spot was eventually filled by Trump adviser Stephen Miran, who took an unpaid leave from his role as chair of the White House Council of Economic Advisers and has frequently advocated for quick rate reductions.

Kugler was appointed to the Fed in September 2023 by former US President Joe Biden.

On August 1, the former Fed governor announced her resignation, starting August 8, about six months before her term ends. She did not give a reason and missed the Fed's July meeting. The Fed explained her absence as due to a“personal matter.”

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Before the meeting, Kugler requested permission to conduct transactions related to what the Fed official referred to as illegal financial holdings. It is still not clear which holdings were involved in the request.

Allegations against Kugler

Kugler reportedly requested a waiver from rules that required top Fed officials to obtain clearance before certain financial transactions and to stop trading during blackout periods that coincide with policy meetings.

Notably, this is not the first time Kugler has been accused of violating the Fed's ethics rules. She admitted in disclosures last year that she breached the trading prohibitions when her husband carried out several stock transactions.

Kugler stated that her spouse purchased the shares without her knowledge. The shares were subsequently sold off, and Kugler was considered to be in compliance with relevant laws and regulations, as per the disclosures.

The latest documents revealed previously undisclosed trading activities in individual stocks during 2024, the transactions that are forbidden for Fed officials and their immediate families. These stocks include Materialise NV, Southwest Airlines, Cava Group, Apple Inc., and Caterpillar.

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