(RepublicanPress.org) – The Federal Reserve Board is embroiled in controversy in the wake of the recent resignations of two of its 12 regional bank presidents. Reports emerged that both individuals actively traded stocks in 2020 while the Fed vigorously fought to offset the economic impact of the coronavirus pandemic. Amid this chaotic backdrop, the board is putting new policies in place to restrict certain activities of staff members.
On Thursday, October 21, the Fed Board formally announced new policies restricting active trading and individual securities purchases by its policymakers and senior staff members. Additionally, the new rules address time limits for the reporting and public disclosure of securities. Among other provisions, those policies will limit senior staff officials to the purchase of “diversified investment vehicles [such as] mutual funds.”
Fed bans stock trading by policymakers and senior Fed staff https://t.co/z9ziYkUvtA
— ForexLive (@ForexLive) October 21, 2021
According to the Federal Reserve’s press release, the new policies will require Federal Reserve policymakers and senior staff to:
- Give 45 days notice before buying or selling securities;
- Obtain approval for those purchases or sales ahead of time;
- Hold investments for at least a full year; and
- Publicly reveal all financial transactions within 30 days.
Jerome Powell, the head of the Federal Reserve Board, said the new policies would “raise the bar” on investments. He explained the move is to “assure the public” that its workers “maintain a single-minded focus” on the job at hand — protecting the economic interests of the American public as a whole.
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