Former Federal Reserve governor Kugler resigned abruptly after Chairman Powell declined to approve an exemption that would have allowed her to avoid handling financial assets in violation of the Fed’s ethical guidelines. A source familiar with the situation revealed that Kugler was under investigation by the Fed’s internal oversight body due to recent inconsistencies in her financial disclosures before her resignation in August. Documents obtained on Saturday indicate that the Fed’s ethics office refused to approve her latest financial disclosure materials, forwarding the matter to the Fed’s Inspector General. These filings, published on the U.S. Office of Government Ethics website, suggest that Kugler’s financial activities may have violated internal ethical standards set by the Fed.