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Under pressure, Powell says Fed to revamp its trading rules
Source: Associated Press
Under pressure, Powell says Fed to revamp its trading rules
By CHRISTOPHER RUGABER
September 22, 2021
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said Wednesday that the central bank will overhaul its financial ethics policies in response to growing questions about investing and trading decisions by high-ranking Fed officials that raise potential conflicts of interest.
“It is now clearly seen as not adequate in sustaining the public’s trust,” Powell said at a news conference after the Fed’s interest-rate setting committee ended a two-day policy meeting. “We need to make changes, and we’re going to do that as a consequence of this.”
Powell stopped short of saying explicitly that the trading moves made by the Fed officials were inappropriate. And he offered few details about what the Fed might do or how it would conduct its ethics review.
The issue arose after it was revealed that Robert Kaplan, president of the Federal Reserve Bank of Dallas, traded millions of dollars’ worth of individual stocks such as Amazon, Chevron, Facebook and Johnson & Johnson in 2020, at the same time that the Fed was taking extraordinary measures to boost the economy. The Fed’s moves likely lifted stock prices and other financial assets.
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By CHRISTOPHER RUGABER
September 22, 2021
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said Wednesday that the central bank will overhaul its financial ethics policies in response to growing questions about investing and trading decisions by high-ranking Fed officials that raise potential conflicts of interest.
“It is now clearly seen as not adequate in sustaining the public’s trust,” Powell said at a news conference after the Fed’s interest-rate setting committee ended a two-day policy meeting. “We need to make changes, and we’re going to do that as a consequence of this.”
Powell stopped short of saying explicitly that the trading moves made by the Fed officials were inappropriate. And he offered few details about what the Fed might do or how it would conduct its ethics review.
The issue arose after it was revealed that Robert Kaplan, president of the Federal Reserve Bank of Dallas, traded millions of dollars’ worth of individual stocks such as Amazon, Chevron, Facebook and Johnson & Johnson in 2020, at the same time that the Fed was taking extraordinary measures to boost the economy. The Fed’s moves likely lifted stock prices and other financial assets.
-snip-
Read more: https://apnews.com/article/business-jerome-powell-4121fd0feab155951da7fe31cfb02cb1