- Federal Reserve Chairman Jerome Powell directed staff to review the central bank’s ethics rules after several Fed presidents disclosed large investments and stock trades.
- News of Powell’s inquiry broke after Sen. Elizabeth Warren sent 12 letters to the Fed’s regional bank presidents demanding stricter ethics around stock buying.
- Documents revealed that Dallas Fed President Robert Kaplan traded Apple, Amazon and Delta Air Lines stock in 2020.
Federal Reserve Chairman Jerome Powell directed staff to review the central bank’s ethics rules for appropriate financial activities after disclosures that several senior central bank officials made multiple multimillion-dollar stock trades in 2020, while others held significant investments.
News of Powell’s inquiry broke after Sen. Elizabeth Warren sent 12 letters to the Fed’s regional bank presidents demanding stricter ethics from the nation’s top central bank officials.
The Massachusetts Democrat called on each Fed president to institute a ban on the ownership and trading of individual stocks by senior officials at each regional office.
Last week, financial disclosures filed by the Fed’s 12 regional presidents revealed some had actively traded in 2020, while others held million-dollar financial positions without making changes to their portfolios.
A Fed spokesman told CNBC that Powell last week ordered a “fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials.”
Powell ordered the review “because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission,” the spokesman said. “This review will assist in identifying ways to further tighten those rules and standards. The Board will make changes, as appropriate, and any changes will be added to the Reserve Bank Code of Conduct.”
Documents released last week revealed that Dallas Fed President Robert Kaplan made multiple trades worth $1 million or more last year in individual stocks including Apple, Amazon and Delta Air Lines.
Read more on CNBC…
